Here’s where I draw the IoT privacy line! social sensing badges

Posted on 5th November 2013 in Internet of Things, management, privacy

Yikes!

I had the same reaction to this story by the Boston Globe‘s Scott Kirsner (“Is this a management breakthrough, or Big Brother in the workplace?” — sorry, no linkie: it only appears to be available through the subscribers’ archive) that a lot of people did to the story about the hacked, un-encrypted baby monitor: this is the Internet of Things run amok.

Sociometric Badge

It seems that a local firm, Sociometric Solutions,  has come up with a “social sensing badge” that employees would wear around their necks. According to the firm’s CEO, Ben Waber, before long “every employee ID badge will have sensors in it.” Holy George Orwell!

As Kirsner said, “You might call it the NSA style of management.” My thoughts exactly.

Here’s how this demonic gizmo works:

“…the badges rely on infrared sensors to know when you are clustered with other people in a meeting or conversation. While they don’t record conversations, they capture data about how often you talk versus listen, how frequently you interrupt people, and your tone of voice.” (my emphasis)

This is supposed to lead to a more humane workplace, that “.. will enable companies to try different approaches to office design, corporate hierarchies, and perhaps even work schedules.”

Baloney!

I’m reminded of a story a friend tells. He had a very talented employee who was anti-social, and frequently would work in the middle of the night, even sleep at his desk. Unconventional, but absolutely essential to the department. How long do you think he’d last after wearing one of these badges? Turn in your sociometric badge as you pick up your last check, anyone with ADHD or Aspergers — and probably a lot of others who wouldn’t fit some manager’s pre-conception of the ideal employee!

According to workplace consultant Alexandra LaMaster, of OrgSpeed:

“When there’s trust between an employer and employee, and they see that you’re moving people around because you want more communication across departments, or to achieve some kind of business result, that’s one thing. If there’s a lack of trust, people might feel they’re being policed.”

I’ve seen far too many dysfunctional workplaces — particularly in low-status companies such as retailers — to subscribe to the idealized view of how this device could be used. As far as I’m concerned, the sociometric badge is one example of technologists (IMHO, shame on MIT Prof. Sandy Pentland, who is a co-founder and chairman of the company’s board, and who I’d always counted among the IoT Good Guys) who get the idea that because you can do something, you should do it.

You shouldn’t.

What do you think?

 

 

 

IoT Essential Truths: Coordination

Posted on 1st November 2013 in design, Essential Truths, Internet of Things, M2M, maintenance, management

Just as I’ve written repeatedly about one of the “Essential Truths” of the Internet of Things is that we have to learn how to collaborate, there’s another “co- word” that’s crucial to realize its full potential: coordinate!

That’s brought to mind by news from this week’s Internet of Things World Forum in Barcelona, where SAP (full disclosure: I’m working on a project for them), and SK Solutions, the global leader in anti­-collision software (heck, I didn’t even know there was such a thing as anti-collision software, let alone that SK was the leader!) have teamed to create a system helping engineering and construction companies increase collision avoidance and protect workers through real-time information sharing.

I’d never thought of it, but modern construction sites are a nightmare in terms of the need for coordination, with huge cranes, a multitude of construction vehicles, and many workers on the site.

The system, being tested at a construction site in Dubai, is gathering actionable, real-time data (historical data is pointless when so many players are interacting right now!) from mobile field workers, equipment and operational processes.

When you think of it, it’s difficult to maximize productivity and cut costs on a job site because so many operations have to be coordinated.

Here’s how it works:

“SK Solutions deploys sensors on cranes and construction vehicles to pull data such as 3­D motion control via inertial motion unit, location via GPS and load weight, equipment usage and wind speed and direction. This data is loaded first into the Navigator real­time operating system and its on­board set of applications, including collision avoidance. The data is then fed through the SK Navigator Anywhere Agent, which uses SAP technology. Site and project managers monitor the equipment via a dashboard built with SK Asteroid, which uses the SAP HANA platform, SAP® 3­D Visual Enterprise applications and SAP LumiraTM software. SK Asteroid 360 Middleware is a cloud­based platform that provides connectivity to SAP® Business Suite software.”

That leads me to another “Essential Truth” of the Internet of Things:

We have to start asking, where are there situations where real-time data from a variety of sources could help coordinate inter-related activities to improve safety & efficiency and reduce costs?

Whether it’s coordinating hospital rooms, integrating supply chains or assembly lines — even traffic flow — there are situations everywhere in which the Internet of Things can improve productivity, reduce operating costs — and even save lives.

N.B. For those who are interested in what the prefix co- really means, it’s from a Latin prefix of the same name, and means togethermutuallyjointly. Class dismissed..

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First survey of C-level execs’ view of the IoT

For a big project I’m working on, I’ve fruitlessly combed the Web for surveys of C-level executives’ view of the Internet of Things — until now!

ARM has just released results of a worldwide June survey, “The Internet of Things Business Index: a quiet revolution gathers pace,” that included many C-level executives, which the Economist‘s Intelligence Unit did for ARM about respondents’ attitudes toward the IoT.

I’d strongly advise you to read the entire report for a reality check on the current state of the IoT (provided, of course, that the sample population really reflects corporate attitudes as a whole — in my mind, that’s a big if, because most companies just haven’t been disclosing much information about IoT initiatives. Of course that might be because they view IoT initiatives as a real strategic advantage!).

I was happily surprised, given the low level of business media coverage of the IoT until recent months, to see how many of those surveyed knew about the IoT and were actively involved in planning for corporate initiatives, although most of those initiatives were only in the early research stages and most companies weren’t convinced the IoT would be of major near-term benefit.

The report concluded that companies are taking the IoT seriously, although without a lot of public notice:

“The Internet of Things (IoT) is an idea whose time has finally come. Falling technology costs, developments in complementary fields like mobile and cloud, together with support from governments have all contributed to the dawning of an IoT ‘quiet revolution’. Now, after more than a decade of slow progress, the business community is beginning to look seriously at the IoT—to the extent that a mere 6% of business leaders believe that the idea of IoT is simply hype…”

Here are the major findings:

  • “over three-quarters of companies are either actively exploring or using the IoT. The vast majority of business leaders believe that it will have a meaningful impact on how their companies conduct business, yet there is some divergence about the wider effect it will have”
  • “optimism about the IoT is not yet matched by investment.” 96% expect to use the IoT in some way within 3 years, but they aren’t spending much on it: only 30% have increased their IoT spending by double-digits since 2012.
  • 61% think “companies that are slow to integrate the IoT into their business will fall behind the competition.” Consider yourself forewarned!
  • only 24% felt that the IoT would be “very relevant, used by the majority of the business” within the next 3 years.
  • “A lack of IoT skills and knowledge among employees and management is viewed as the biggest obstacle to using the IoT more extensively. To address these gaps, organisations are training staff and recruiting IoT talent, raising the potential for IoT talent wars. Others are hiring consultants and third-party experts, seeking to build knowledge and identify successful IoT business models.” (sounds like a lot of opportunity for our ilk!)
  • Here’s one that particularly resonated with me because of my relentless emphasis on collaboration as one of the “Essential Truths” of the IoT: “Companies must learn to co-operate with players across industries, including competitors…. businesses must be willing to adopt a different mindset. Successful IoT rollouts require interconnected networks of products and services, but few senior executives currently expect their business to become more co-operative with competitors as a result of the IoT. ” Oops: too bad for you — it ain’t just a technological shift, but an attitudinal one as well!
  • It’s going to lead to a data explosion. While companies think they’re up to this challenge, “….prior experience of storing and analysing large amounts of “big data” may lead them to underestimate the additional talent and skills needed to spot new uses and revenue steams emerging from it.” It will also increase needs for security and privacy. 

The Economist chose the ARM report as the setting to announce a new IoT Business Index, which will be updated to track progress toward actualizing the IoT. In the benchmark edition of the index, most businesses are in the “research” stage (at  point 4 on a scale of 1 to 10). They are more likely to use the IoT at this point for internal operations and processes instead of external products or services. As I’d expected, European companies are in the lead, and, among industries, manufacturing is the leading one. Hmm: wonder if that means a growing number are installing sensors on the assembly line?

The survey included 779 senior business leaders, among whom almost half (49%), were C-level executives or board members. The sample included:

  • 29% from Europe, 29% from North America, 30% from Asia-Pacific, and  12% from Latin America, the Middle East and Africa.
  • 19 industries. About 10% each from financial services, manufacturing, healthcare, pharmaceuticals and biotechnology, IT and technology, energy and natural resources, and construction and real estate.
  • The sample is evenly split between large firms, with an annual revenue of more than US$500m, and small and mid-sized firms.

All in all, I think this is an important reality check in terms of commercialization of the IoT. It seems that it’s increasingly on the corporate radar, but that hasn’t translated into a lot of concrete action. It will be interesting to track annual updates of The Economist‘s IoT Business Index to see if analysis turns into action.

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Just thinking: could Quantified Self devices lead to #IoT BYOD for companies?

Posted on 21st October 2013 in health, Internet of Things, M2M, management, privacy, security, strategy

I’ve been noodling how do you introduce the Internet of Things to companies that haven’t even heard of it, let alone have a strategy to capitalize on it. It would probably have to be something that would have minimal up-front costs, provoke aha! moments that would stimulate other IoT initiatives, and would provide some quick return on investment.

Jawbone UP

Having just read SAP’s interactive report on mobile strategies, it dawned on me: if companies are now comfortable with creating BYOD policies covering smartphones and tablets, what if they were to create formal policies to encourage employees to bring their Quantified Self  devices — Jawbone UPs, Nike FitBits, and the like — after all, the workers are probably already doing so anyways!

What if — thinking out loud here — the company could enter anyone using one of the devices during the work day in some sort of contest with fitness prizes, or, — this is more controversial because of privacy concerns — if they offered discounts on health insurance for workers who were willing to share their QS data with the company (since companies are penalizing overweight workers, shouldn’t it work the other way as well?).

Heck, given the payback in terms of  lower absenteeism, higher productivity, and lower medical claims, I bet you could make a plausible case that it would be in the company’s enlightened self-interest to actually pay for the devices for those who don’t already have them.

It’s just a thought, and there would be a lot of details to work out, but I think it merits consideration as a way to introduce the IoT’s benefits to corporate America. Let me know how you feel!

Agriculture and the Internet of Things

Posted on 21st October 2013 in agriculture, environmental, Internet of Things, M2M, management

I’m particularly interested in how very traditional businesses will make the transition to the Internet of Things (Exhibit A: see my post from last year about the incredible way the Union Pacific Railroad has been able to switch to “predictive maintenance” by stringing sensors all along its tracks).

What could be older, and more basic, than agriculture?

Lance Donny, the founder and ceo of On Farm Systems, gave an overview of the potential of the Internet of Things to radically increase productivity and cut costs in agriculture at last week’s GigaOM Mobilize conference, saying that agriculture is a “sleeping giant,” when it comes to real-time data.

At present, the industry is handicapped by the high cost of sensors — they can run hundreds of dollars apiece — and lack of infrastructure — there’s no wi-fi, and, more often than not, bandwidth on the farm is limited.

Despite that, On Farm and other firms in the field (ooh, bad pun) are already helping farmers, especially with the critical issue of managing water use. He said there are already 14 million “connected farms” in the US and Europe, and by 2020 there will be 70 million connected devices on farms (interest in the technology is also increasing in developing nations.

Donny mentioned that a big issue with really serving farmers’ needs is that since they’re operating in a moving tractor, “you can’t give them too much data,” but must pay a lot of attention to the user interface, and only give them limited amounts of actionable data.

This “precision agriculture” yields tremendous volumes of data, and one of the problems facing IT firms in agriculture is that there are no common platforms (On Farm uses ThinkWorx), so adding a new data source from another provider requires contacting them directly and then connect to their API.

He said that reducing water usage by pinpointing when it is needed and how much is the biggest challenge, pointing out that 70% of fresh water usage is for agriculture —  even a 5% reduction in use could have tremendous implications not only for farmers, but a world with inadequate water supplies.

Donny said that Monsanto’s recent purchase of Climate Corp., which underwrites weather insurance for farms, for nearly a billion dollars “started a data war” in agriculture. He said that the goal will be to combine enough real-time data so that farmers would have 90% or more accurate 5-day weather forecasts in order to manage water better.

If the IoT is emerging as a priority for as basic an industry as farming, can other mainstream businesses be far behind?

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GigaOM’s Mobilize conference full of IoT insights!

Posted on 17th October 2013 in design, health, Internet of Things, M2M, management, manufacturing, marketing

I’ve been busy for the last two days, so I’ve only been able to view a couple of them, but from what I have seen (I’ll blog about specifics later), the GigaOM Mobilize conference has been an absolute goldmine of insights, especially into the nuts and bolts of the IoT. As soon as the livestream video is archived, don’t miss them!

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General Electric Keeps on Practicing What They Preach!

I’m beginning to sound like a schill (no, not a typo, just a bad joke: short for [Curt] Schilling, the former Red Sox pitcher — sorry, I can’t get those guys out of my head today…) for GE, but it’s hard to argue with their impressive record of walking their talk about the “Industrial Internet,” their marketing term for the subset of the Internet of Things dealing with the industrial sector.

The latest evidence? A report today in the NYTimes‘ “Bits” blog that GE has just announced “14 more products that combine industrial equipment, Internet-linked sensors and software to monitor performance and analyze big streams of data. G.E. had previously announced 10 similar industrial products.”

Equally impressive, the Industrial Age behemoth turned nimble IoT leader said that by next year, almost all industrial products it makes will have built-in sensors and Big Data software to analyze the huge data streams those sensors will create.

Right now I’m writing an e-book on IoT strategy for C-level executives (not sure if I can disclose the customer — it’s a big one!) and GE VP of Global Software William Ruh, used the news to fire a shot across the bow at companies that are slow to realize a fundamental paradigm shift in manufacturing, product design and maintenance is well underway:

““Everyone wants prediction about performance, and better asset management… The ideas of speed, of information velocity, is what will differentiate the winners from the losers.”

You in the corner office: got your attention?

Equally important, given my insistence that the IoT is all about collaboration, GE simultaneously announced partnerships with Cisco, AT&T and Intel. It had already inked deals with Accenture and Amazon’s cloud subsidiary and has also invested in  Pivotal, an Industrial Internet app creator.

Smart companies will follow GE’s lead in radically reforming the product design process to capitalize on the rapid feedback on performance that the Industrial Internet products’ built-in sensors yield. According to Ruh, they’re switching to an iterative design process, with rapid changes based on data from the field:

“… G.E. is adopting practices like releasing stripped-down products quickly, monitoring usage and rapidly changing designs depending on how things are used by customers. These approaches follow the ‘lean start-up’ style at many software-intensive Internet companies.

“’We’re getting these offerings done in three, six, nine months,’ he said. ‘It used to take three years.’” (my emphasis)

That change is definitely going to make it into my e-book! Brilliant example of how the IoT, by allowing companies to think in terms of systems dynamics, especially feedback loops, will have profound impacts on the design and manufacturing processes, integrating them as never before (oh, and don’t forget, the data from the built-in sensors will also allow companies to start marketing services — such as leasing jet turbines, with the lease cost based on the actual amount of thrust the engines create)!

Combined, that’s definitely a paradigm shift!

Oh, I almost forgot. Here’s a brief rundown of the products themselves and the industries served. They are clustered under the Predictivity name, and are powered by Predix, a new IoT platform:

  • The Drilling iBox System (oil and gas)
  • Reliability Max (oil and gas
  • Field 360 (oil and gas)
  • System 1 Evolution (oil and gas)
  • Non-destructive Testing Remote collaboration (oil and gas)
  • LifeMax Advantage (power and water)
  • Rail Connect 360 Monitoring and Diagnostics (transportation)
  • ShipperConnect (transportation)
  • Flight Efficiency Services (aviation)
  • Hot SimSuite (healthcare)
  • Cloud Imaging (healthcare)
  • Grid IQ Insight (energy management)
  • Proficy MaxxMine (energy management)

Given the diversity of industries the Predictivity products serve and GE’s global clout, I predict this level of commitment will radically accelerate the IoT’s adoption by big business, as well as accelerating the payback in terms of lower operating, energy and maintenance costs, and reduced environmental impacts.

Will GE’s competitors in these sectors get on board, or will they be left in the dust?

 

Launching New Service Speaking About the Internet of Things

I’ve given speeches to business and academic audiences around the world for nearly 30 years, but haven’t tried my hand at paid public speaking until now!

However, I feel so strongly about the transformational potential of the Internet of Things that I want to evangelize on the Big Stage now, reaching corporate management, associations, and — very important — college and university students, with the message about how the IoT will change everything, and the challenges and opportunities it will bring.

So, I’ve added a new page to this site, promoting myself as a paid speaker and seminar leader.

While I’m glad to custom-craft a speech to your audience’s interests, I have several main ones tailored to various needs:

“It’s Not Just About Things, It’s About People… and Their Dreams”. Sometimes the emphasis on Internet of Things technology obscures the deeper truth: the IoT is really all about people – and improving their lives. This speech introduces laypeople and business leaders to the Internet of Things’ potential to transform every aspect of life for the better! From slippers that save the elderly from falls to hyper-efficient assembly lines that bring manufacturing jobs back to America, I give an uplifting, rapid-fire overview of the many ways the IoT is already changing our lives – and preview the even greater changes to come! I also talk about the important steps, such as new mind sets that value sharing information over hoarding it, that are necessary to fully realize the IoT’s potential.

Josh Siegel is 24. He is Reinventing the Auto Industry (this lecture is specifically aimed at college students). Josh Siegel is a 24-year old Detroiter, MIT grad student and entrepreneur. He uses the IoT to reinvent cars – whether or not Detroit is ready. Alexandra Deschamps-Sonsino is 32, and created an IoT sensation, the Good Night Lamp. Dulcey Madden is 32 (her partners are both 24), and her Peeko “onsie” is saving the lives of infants who might otherwise die from Sudden Infant Death Syndrome.

In this lecture you’ll hear about these and other young visionaries and inventors who are discovering new entrepreneurial opportunities in the Internet of Things. I challenge young listeners: what’s your passion? How will you find satisfying – and enriching – work in this exciting new field? What problem can you solve by inventing an IoT device?

P.S: Ask me to stay around the day after my speech to meet with your senior staff to advise them on how the IoT will affect your college or university, and how you can use it to increase efficiency and cut operating costs!

“I … see all … the devices in your home and … control them”. That’s how a Forbes reporter woke up an unsuspecting homeowner who’d bought an advanced home automation system – and got non-existent security in the bargain!

The Internet of Things might come to a grinding halt if the public and companies feel that their privacy and security are being violated. That’s a very real possibility – former CIA director David Petraeus waxed poetic about its potential as a spycraft tool, and a number of sensationalistic mainstream media reports have detailed the possible dangers of lax IoT privacy and security measures.

In this speech, I may scare you, but I’ll definitely get your attention! I lay out all the risks, issue a challenge to everyone involved in the IoT to make security and privacy a priority, and detail the current state of collaborative efforts to improve security and privacy.

I’m enthusiastic, well-informed, witty, (add positive adjective of your choice here …… , LOL) and convincing! If you’re interested in booking me, just fill out the contact form and download my “speaker one sheet.”

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Essential Truths of the IoT: Listen to the Things

No, “Listen to the Things” isn’t some sort of zen lesson, although it could be!

It is one of my occasional series of “Essential Truths of the IoT“: fundamental underlying principles that are essential to understanding the true nature of the Internet of Things as a fundamental paradigm shift.

Sensor-equipped GE power turbine

I think particularly of General Electric when I think of this fundamental principle, because GE is turning “listening to things” into major innovations in product design that, in turn, are leading to new ways of marketing their products and new revenue streams.

For example, not only is GE able to optimize production of the advanced cell-phone tower batteries at its state-of-the-art factory in Schenectady, NY because of 10,000 sensors on the assembly line, but also the batteries themselves include built-in sensors that allow GE to monitor their condition.

Thinking in terms of “listening to things” has revolutionized the very way GE markets its jet engines. Some of its new engines contain 20 sensors, which can generate up to a were 20 sensors that monitor the engine’s performance, generating up to a terrabyte of information on a cross-country flight. That allows the airline user to do “predictive maintenance,” which uses actual data on the actual engine — not just some recommended service interval for engines in general, to determine when that specific engine needs maintenance for best performance.

It also gives GE the option of leasing the engine instead of selling it, with the actual price of the lease again dependent on the actual usage of that particular engine, rather than some arbitrary average.

The customer also benefits — as does the global environment. GE calculates that if “an average-sized airline used F&CS  (Fuel and Carbon Solution to achieve a 2% improvement in fuel consumption, it would be equivalent to removing more than 10,000 cars from our roads.”

Here’s the problem — and the opportunity. We’re used to “dumb things” that were inscrutable — you couldn’t “listen” to how they were actually operating if your life depended on it. As a result, we don’t automatically see the opportunities to redesign products to include sensors that will automatically report real-time data about their operating state and possible problems. To capitalize on this “Essential Truth” of the IoT we will have to start asking a new question:

what things that are part of our intrastructure and/or our products
can be redesigned so we can “listen” to them — and 
learn from them?

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Could IoT Allow Do-over for Privacy, Security — & Trust?

Posted on 13th September 2013 in communication, management, privacy, security

Expect to be reading a lot here about privacy and security between now and my panel on those issues at the IoT Summit in DC, Oct. 1 & 2, as I prep to ask the panel questions!

Here’s another, from Stacy Higginbotham (BTW, she does a great podcast on IoT issues!), based on a conversation with ARM CTO Mike Muller. It’s reassuring to see that this IoT-leading firm is taking privacy and security seriously. Even more refreshingly, theirs is a nuanced and thoughtful view.

Muller told Higginbotham that IoT vendors should learn from some of the missteps on privacy on the Web so far, and make amends:

“’We should think about trust as who has access to your data and what they can do with it. For example, I’ll know where you bought something, when you bought it, how often and who did you tweet about it.

“When you put the long tail of lots of bits of information and big data analytics associated with today’s applications we can discern a lot. And people are not thinking it through. … I think it’s the responsibility of the industry that, as people connect, to make them socially aware of what’s happening with their data and the methods that are in place to make connections between disparate sets of data (my emphasis). In the web that didn’t happen, and the sense of lost privacy proliferated and it’s all out there. People are trying to claw that back and implement privacy after the fact.”

Higginbotham adds that “… what troubles Muller is that today, there’s nothing that supports trust and privacy in the infrastructure associated with the internet of things.”

What struck me, as someone who used to earn his living doing corporate crisis management, is that one of the critical issues in trust (or lack thereof) is guilt by association may not be logically valid, but is emotionally powerful: if people’s preconception of IoT privacy and security standards is that they’re simply an extension of Internet ones, there’s likely to be trouble.

She goes on to differentiate between security, privacy — and trust.

“Trust is the easiest to define and the hardest to implement. It relies on both transparency and making an effort to behave consistently ….  When it comes to connected devices and apps, trust is probably most easily gained by explaining what you do with people’s data: what you share and with whom. It might also extend to promises about interoperability and supporting different platforms. Implicitly trust with connected devices also means you will respect people’s privacy and follow the best security practices….

“Privacy is more a construct of place as opposed to something associated with a specific device. So a connected camera on a public street is different from a connected camera inside your home. It’s easy to say that people shouldn’t be able to just grab a feed from inside your home — either from a malicious hack or the government (or a business) doing a random data scrape. But when it comes to newer connected devices like wearables it gets even more murky: Consider that something like a smart meter can share information about the user to someone who knows what to look for.

“So when thinking about the internet of things and privacy, it’s probably useful to start with thinking about the data the device generates….

(As for security:) “To protect privacy when everything is connected will require laws that punish violations of people’s privacy and draw lines that companies and governments can’t step over; but it will also require vigilance by users. To get this right, users should be reading the agreements they click through when they connect a device, but companies should also create those agreements, especially around data sharing transparent, in a way that inspires trust.

Governments and companies need to think about updating laws for a connected age and set criteria about how different types of data are transported and shared. Health data might still need the HIPAA-levels of regulations, but maybe looser standards can prevail for connected thermostats.”

Sounds to me as if there’s a role in these complex issues for all of us: vendors, government, and users.

But the one take-away that I have from Muller’s remarks is that IoT vendors must realize they have to earn users trust, and that’s going to require a combination of technical measures and unambiguous, plain-English communication with users about who owns their data and how it will be used. To me, that means not hiding behind the lawyers and agate-type legal disclaimers, but clear, easy-to-understand declarations about users’ rights to their data and companies’ need to directly ask them for access, displayed prominently, with the default being that the user completely denies access, and must opt in for it to be shared. 

What do you think?

Higginbotham concludes that “we need to stop freaking out about the dangers of connected devices and start having productive discussions about implementing trust and security before the internet of things goes the way of the web. Wonderful, free and a total wild west when it comes to privacy.” Hopefully, that’s what will happen during our October 1st panel.

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