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Miscellaneous warnings: ---------------------------------------------------------------------------- == The copyright year in the IETF Trust and authors Copyright Line does not match the current year == Line 78 has weird spacing: '...related thr...' == Line 85 has weird spacing: '... data man...' == Line 93 has weird spacing: '...uipment upd...' -- The document date (October 27, 2016) is 2737 days in the past. Is this intentional? Checking references for intended status: Informational ---------------------------------------------------------------------------- No issues found here. Summary: 2 errors (**), 0 flaws (~~), 4 warnings (==), 1 comment (--). Run idnits with the --verbose option for more detailed information about the items above. -------------------------------------------------------------------------------- 2 Internet Research Task Force H. Baba 3 Internet-Draft The University of Tokyo 4 Intended status: Informational Y. Ishida 5 Expires: April 30, 2017 Japan Network Enabler Corporation 6 T. Amatsu 7 Tokyo Electric Power Company, Inc. 8 K. Kunitake 9 BroadBand Tower, Inc. 10 K. Maeda 11 Lepidum Co. Ltd. 12 October 27, 2016 14 Problems in and among industries for the prompt realization of IoT and 15 safety considerations 16 draft-baba-iot-problems-02 18 Abstract 20 This document contains opinions gathered from enterprises engaging in 21 the IoT business as stated in the preceding version hereof, and also 22 examines the possibilities of new social problems in the IoT era. 23 Recognition of the importance of information security has grown in 24 step with the rising use of the Internet. Closer examination reveals 25 that the IoT era may see a new direct physical threat to users. For 26 instance, the situation at a smart house may lead it to judge that 27 the owner has only temporarily stepped out, causing it to unlock the 28 front door, which in turn makes it easier for thieves to enter. 29 These kinds of scenarios may occur without identity fraud, hacking, 30 and other means of compromising information security. Therefore, for 31 the purpose of this document, this issue shall be referred to as "IoT 32 Safety" to distinguish it from Information Security. 34 We believe that it is necessary to deepen our understanding of these 35 new IoT-related threats through discussion and ensure there are 36 measures to address these threats in the future. At the same time, 37 we must also coordinate these measures with the solutions to the 38 problems described in the previous version of this document. 40 Status of This Memo 42 This Internet-Draft is submitted in full conformance with the 43 provisions of BCP 78 and BCP 79. 45 Internet-Drafts are working documents of the Internet Engineering 46 Task Force (IETF). Note that other groups may also distribute 47 working documents as Internet-Drafts. The list of current Internet- 48 Drafts is at http://datatracker.ietf.org/drafts/current/. 50 Internet-Drafts are draft documents valid for a maximum of six months 51 and may be updated, replaced, or obsoleted by other documents at any 52 time. It is inappropriate to use Internet-Drafts as reference 53 material or to cite them other than as "work in progress." 55 This Internet-Draft will expire on April 30, 2017. 57 Copyright Notice 59 Copyright (c) 2016 IETF Trust and the persons identified as the 60 document authors. All rights reserved. 62 This document is subject to BCP 78 and the IETF Trust's Legal 63 Provisions Relating to IETF Documents 64 (http://trustee.ietf.org/license-info) in effect on the date of 65 publication of this document. Please review these documents 66 carefully, as they describe your rights and restrictions with respect 67 to this document. Code Components extracted from this document must 68 include Simplified BSD License text as described in Section 4.e of 69 the Trust Legal Provisions and are provided without warranty as 70 described in the Simplified BSD License. 72 Table of Contents 74 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . 3 75 2. Technical Challenges . . . . . . . . . . . . . . . . . . . . 4 76 2.1. Safety, Security and Privacy . . . . . . . . . . . . . . 4 77 2.1.1. Challenges in protecting lives and property from IoT- 78 related threats (IoT Safety) . . . . . . . . . . . 4 79 2.1.1.1. Safety of body/life . . . . . . . . . . . . . . . 5 80 2.1.1.2. Safety of equipment . . . . . . . . . . . . . . . 5 81 2.1.1.3. Proper performance of equipment . . . . . . . . . 5 82 2.1.2. Information Security . . . . . . . . . . . . . . . . 5 83 2.1.3. Privacy in acquiring data . . . . . . . . . . . . . . 6 84 2.2. Challenges posed by data acquisition, data distribution, 85 data management and data quantity . . . . . . . . . . 7 86 2.2.1. Traffic patterns . . . . . . . . . . . . . . . . . . 7 87 2.2.2. Acquired mass data . . . . . . . . . . . . . . . . . 7 88 2.2.3. Explosive increase and diversity of data . . . . . . 7 89 2.3. Mapping of the physical world and the virtual world . . . 8 90 2.3.1. Physically handling acquired data . . . . . . . . . . 8 91 2.3.2. Data calibration . . . . . . . . . . . . . . . . . . 8 92 2.4. Product lifetime, generation management, and the cost of 93 equipment updates . . . . . . . . . . . . . . . . . . 8 94 2.4.1. Product lifetime . . . . . . . . . . . . . . . . . . 8 95 2.4.2. Introducing IoT equipment into commodity equipment . 9 96 2.5. Too many related standards and the speed of 97 standardization . . . . . . . . . . . . . . . . . . . . . 9 99 2.5.1. Too many related standards . . . . . . . . . . . . . 9 100 2.5.2. Speed of standardization . . . . . . . . . . . . . . 10 101 2.6. Interoperability, fault isolation, and total quality 102 assurance . . . . . . . . . . . . . . . . . . . . . . . . 10 103 2.6.1. Interoperability . . . . . . . . . . . . . . . . . . 10 104 2.6.2. Fault isolation . . . . . . . . . . . . . . . . . . . 10 105 2.6.3. Quality assurance . . . . . . . . . . . . . . . . . . 11 106 2.7. Product design policy . . . . . . . . . . . . . . . . . . 11 107 2.7.1. Changes in design policy . . . . . . . . . . . . . . 11 108 2.8. Various technology restrictions within actual usage . . . 11 109 2.8.1. Using radio waves . . . . . . . . . . . . . . . . . . 11 110 2.8.2. Batteries . . . . . . . . . . . . . . . . . . . . . . 12 111 2.8.3. Wiring . . . . . . . . . . . . . . . . . . . . . . . 12 112 2.8.4. Being open . . . . . . . . . . . . . . . . . . . . . 12 113 3. Non-technical Challenges . . . . . . . . . . . . . . . . . . 13 114 3.1. Changing the product paradigm . . . . . . . . . . . . . . 13 115 3.1.1. Ecosystems . . . . . . . . . . . . . . . . . . . . . 13 116 3.1.2. Coordination and significant changes in strategy . . 13 117 3.1.3. Competition with existing industries . . . . . . . . 13 118 3.2. Benefits . . . . . . . . . . . . . . . . . . . . . . . . 13 119 3.2.1. Rising costs and monetization . . . . . . . . . . . . 13 120 3.3. Information security and privacy of social systems . . . 14 121 3.3.1. Classification of ownership, location, and the usage 122 of data . . . . . . . . . . . . . . . . . . . . . . . 14 123 3.4. Disclosure of data . . . . . . . . . . . . . . . . . . . 14 124 3.4.1. Side effects and malicious use potentially caused by 125 the disclosure of data . . . . . . . . . . . . . . . 14 126 3.5. Preparing social support . . . . . . . . . . . . . . . . 14 127 3.5.1. Regulations . . . . . . . . . . . . . . . . . . . . . 14 128 3.5.2. Corporate social responsibility . . . . . . . . . . . 14 129 3.5.3. Customization for individual customers . . . . . . . 15 130 3.5.4. IoT literacy of the users . . . . . . . . . . . . . . 15 131 3.5.5. Individual vs. family . . . . . . . . . . . . . . . . 15 132 4. Information Security Considerations . . . . . . . . . . . . . 15 133 5. Privacy Considerations . . . . . . . . . . . . . . . . . . . 15 134 6. Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . 16 135 Authors' Addresses . . . . . . . . . . . . . . . . . . . . . . . 16 137 1. Introduction 139 Many activities are progressing in various fields, such as the 140 proposal of standards for creating an IoT world. There are also many 141 reports that analyze and predict the benefits that IoT can bring to 142 the economy and society. These developments remind us of the end of 143 the 20th century, when the effect and impact of the Internet was 144 actively debated. 146 The authors tried using the following approach to clarify the issues 147 for the prompt realization of IoT. First, the players were 148 conveniently divided into two groups: ICT industry players and Things 149 industry players. Next, we met major players in the ICT industry and 150 Things industry and asked about the challenges they faced and the 151 challenges the other side faced in creating IoT. 153 The ICT industry players mentioned here include communication 154 carriers, ICT equipment vendors, the Internet service providers, 155 application vendors, and software houses. The Things industry 156 players include home and housing equipment manufacturers, 157 infrastructure providers such as railways companies and power 158 companies, and manufacturers of home appliances such as air 159 conditioners and refrigerators, which are also the ICT users. 161 This paper is principally a summary of the meetings results, and a 162 presentation of the micro case studies about the challenges for 163 realizing IoT services. It is not an overview of the IoT world or a 164 macro-proposal intended to promote the benefits of IoT. 166 In addition, the revised version includes an examination of the 167 possibilities of new direct physical threats in the IoT era that have 168 not yet been seen. These threats should affect the safety of our 169 bodies, lives, and "things," which includes property. For this 170 reason, this issue shall be referred to as "IoT Safety" to 171 distinguish it from Information Security for the purpose of this 172 document. 174 2. Technical Challenges 176 2.1. Safety, Security and Privacy 178 2.1.1. Challenges in protecting lives and property from IoT-related 179 threats (IoT Safety) 181 The introduction of IoT may generate threats to "Safety" through the 182 actual operation of mechanical devices, in addition to the 183 Information Security problems discussed in Section 2.1.2 below. For 184 example, the spread of applications for visualizing electric power 185 consumption allows for mischief in device operation without the use 186 of identity fraud or hacking. In addition, there is the potential 187 for problems to arise in the normal operation of individual devices 188 that are not caused by abnormal current or voltage, another troubling 189 aspect of the introduction of IoT. These issues cannot be resolved 190 with ordinary information security measures for Network Layer 4 or 191 lower. Therefore, the authors consider it necessary to have a system 192 for interpreting the details of operations of many appliances and 193 preventing operations according to the necessity in Layer 7 (what the 194 authors tentatively call "Sekisho".) 196 These threats are categorized into three types: threat to physical 197 safety; the threat of the failure or destruction of equipment and 198 property; and the threat of impeding the proper performance of 199 equipment. The following section introduces examples of the 200 different threats. 202 2.1.1.1. Safety of body/life 204 Information on things such as the use of faucets and housing 205 equipment, the locking of the front doors and windows, and the state 206 of electric power consumption based on the smart meter is used by 207 smart houses to regulate homes. This information is used to 208 determine whether anyone is at home, and the electronic lock of the 209 front door and windows is unlocked and a notice of absence is issued 210 to a thief. 212 2.1.1.2. Safety of equipment 214 Air conditioners and other equipment that normally are not expected 215 to be frequently started or stopped each a day can be caused to break 216 down by repeatedly turning them on and off as many as hundreds of 217 times a day. 219 2.1.1.3. Proper performance of equipment 221 Water heaters containing a hot well can be caused to operate 222 erratically. This is done by frequently transmitting signals from 223 the mischief application instead of operation panel to tell the water 224 heater that only 10% of the normal amount of hot water is needed, 225 leaving the water heater perpetually low on water. 227 2.1.2. Information Security 229 We have confirmed two viewpoints regarding the information security 230 of services using IoT equipment and devices. The first is tangible 231 information security involving the critical infrastructure. The 232 second concerns the information security of individuals and homes. 234 In regards to information security involving the critical 235 infrastructure, the basic policy in the past was to stay physically 236 disconnected from an external network, such as the Internet, to 237 ensure information security. However, because of the advance in the 238 systems from proprietary communication protocols to open IP protocols 239 to detect symptoms of problems and to remotely maintain a large 240 number of facilities spread over a wide area, connecting to an 241 external network will become unavoidable to achieve various goals. 242 In addition, it is clear that isolated networks are also subject to 243 the same kind of risks, even though it is not directly connected to 244 the outside. There is no major difference in the information 245 security risks because isolated networks are already the target of 246 international cyber terrorism, with internal crimes and targeted 247 attacks occurring more frequently. Based on these reasons, the ICT 248 security of the social infrastructure requires an extremely high 249 level of information security. 251 Looking at the information security of micro units, such as 252 individuals and homes, the improved convenience provided by the 253 introduction of IoT will lead to greater risks. For example, there 254 is a product available for connecting the entrance door to the 255 network. In ICT security technology, increasing the key length of 256 the encryption makes it much harder to break. But even if the latest 257 information security technology is used when it is installed, the 258 information security technology will become obsolete and even pose a 259 risk about halfway through the twenty- to thirty-year lifetime of the 260 entrance door. As has been explained in other items, the ICT sense 261 of time is completely different from that of Things. 263 2.1.3. Privacy in acquiring data 265 The problem of privacy in handling acquired data is a huge challenge 266 for companies promoting IoT. In addition, the ownership of this data 267 poses yet another challenge. 269 For example, railway companies have installed many cameras for 270 station security and for marketing beverage vending machines. This 271 creates problems for personal identification and privacy. At the 272 present time, the companies are processing the images in real time 273 and do not store the images to avoid the problems. 275 Another huge challenge is the ownership of data. Up until now, there 276 has been a divided debate on whether data belonged to the company or 277 to the users. Likewise, the relationship inside a small user group 278 is also extremely diverse and complicated. One specific example is 279 of a company that had obtained permission from the head of the 280 household to use the data when it carried out an HEMS trial. Later 281 on, the spouse of the head of the household disagreed and as a result 282 permission to use the data was withdrawn. 284 2.2. Challenges posed by data acquisition, data distribution, data 285 management and data quantity 287 2.2.1. Traffic patterns 289 The manner in which data is acquired from and distributed to IoT 290 equipment/devices differs immensely from the traffic patterns of the 291 present Internet. The present form of the Internet focuses on 292 distributing information, and its systems focus on effectively 293 delivering contents to the users. On the other hand, routinely or 294 temporarily sending or receiving data through a huge number of 295 various sensors and devices presents a very different kind of 296 Internet traffic. However, questions such as how much traffic will 297 come from what kind of Things, and how will they superimpose each 298 other have not been sufficiently studied. There is no concrete 299 explanation about the backbone design and operation of traffic, and 300 there have been many cases in which the unclear specifications for 301 IoT traffic made the design difficult on the communication company 302 side. There are many challenges related to the set up and management 303 of IoT equipment. We have heard from the construction companies that 304 the configuration of IoT equipment with a large number of sensors 305 involves a lot of hard work. 307 2.2.2. Acquired mass data 309 It is necessary to develop a management method to reuse acquired data 310 safely and effectively. Even now, there are occasional instances of 311 the theft and leakage of social data (such as IDs) that can be used 312 to identify individuals. In the IoT era, there will be mass data 313 that can lead to Things, and the Things in turn will lead to 314 individuals. There are IoT industry players who do not invest as 315 much in ICT systems as government agencies and large companies do, 316 and thus a management system to safely and effectively reuse the 317 acquired data needs to be developed. The laws and regulations 318 related to ID management differ vastly by country and region. These 319 issues related to society and individuals are largely affected by 320 differences in common sense, and therefore need to be localized. 322 2.2.3. Explosive increase and diversity of data 324 In the future IoT era, there are concerns about the explosive 325 increase in data quantity and the diversity of data sent from sensors 326 and IoT equipment. On the other hand, M2M communication does not 327 require mass data like images, and an extraordinary increase in 328 traffic will be unlikely despite the increase in the number of 329 sensors. 331 If data is sent from all Things, there will be an infinite number of 332 different kinds of data. In addition, with the present form of 333 Internet traffic, data is received by people, and most of it consists 334 of video or image downloads. The download traffic is several times 335 greater than that of the upload traffic. If there is a tremendous 336 increase in the use of IoT, such as M2M communication, the difference 337 between upload and download traffic will probably not be that much. 338 It might be necessary to fundamentally review the network and in 339 particular the last mile characteristics. The importance of this 340 issue is not yet widely recognized. 342 2.3. Mapping of the physical world and the virtual world 344 2.3.1. Physically handling acquired data 346 The acquired data simply represents certain kinds of digital value, 347 and it is important to uncover the meaning of this data. As 348 described previously, configuration of IoT equipment, such as the 349 large number of installed sensors, requires a lot of hard work. An 350 even greater amount of effort will be needed to determine the meaning 351 of the data and connect it to the physical world. 353 In energy management experiments, data is mapped manually. This is a 354 time consuming process, and one that is prone to human error. Cases 355 that rely on the use of human hands require the configuration of 356 automated setting systems to reduce labor, costs, and human errors to 357 introduce IoT 359 2.3.2. Data calibration 361 Another important thing is calibration. This involves properly 362 linking the data sent from Things to the Things concerned, and 363 correctly indicating the operating conditions. 365 It may be necessary to have a tool to treat this problem concerning 366 continuation of operation and the one pertaining to introduction of 367 IoT described previously as a package. 369 2.4. Product lifetime, generation management, and the cost of equipment 370 updates 372 2.4.1. Product lifetime 374 The life of most ICT equipment is about 5 years or less, while the 375 life of IoT equipment and devices is at least 10 years. There is a 376 clear gap between these two types of equipment. 378 In the example of the entrance door connected to the network 379 mentioned earlier, the door is often used for about twenty to thirty 380 years after installed. If is connected to a network, the 381 communication technology and communication service will most likely 382 have undergone numerous generation changes in that twenty- to thirty- 383 year time span. This presents a large gap between the ICT industry 384 and the Things industry. 386 A solution to this problem that was reached during the meeting with 387 the housing equipment manufacturers is that with the automatic 388 control of multiple shutters in a building, the portion between the 389 controller and the multiple shutters, the so-called mature 390 technology, can be placed under the control of the shutter 391 manufacturers, while the controller connected to the network will 392 deal with the generation changes of the communication service. 394 2.4.2. Introducing IoT equipment into commodity equipment 396 It costs a lot to make the many different types of commodity 397 equipment popular around the world usable as IoT equipment and 398 devices. There are two ways to change commodity equipment into IoT 399 equipment. One way is to convert it to IoT compatible equipment. 400 The other way involves adding devices to commodity equipment. There 401 are costs in both cases, and it will take a long time to introduce 402 IoT unless different incentives are offered to help to overcome the 403 burden of cost. 405 2.5. Too many related standards and the speed of standardization 407 2.5.1. Too many related standards 409 There are many standards related to IoT equipment and devices. There 410 are multiple standards, technologies and services for communication 411 technology, such as Bluetooth, Wi-Fi, NFC, and LTE, and it is 412 difficult to choose which to apply. 414 The Things industry players do not always have the communication 415 technology professionals needed for IoT. In the meeting, we learned 416 that many companies were uncertain and hesitant about fields outside 417 their own area of expertise. On the other hand, technological 418 competition will improve quality as well as the level of completion, 419 and thus will be beneficial for users. 421 In the future, a consulting business for clarifying ICT technology 422 for the Things industry players may emerge. If there is a system 423 that can interconnect multiple standards, it will accelerate the 424 Things industry to enter IoT 426 2.5.2. Speed of standardization 428 The concept of product life in ICT industry is completely different 429 from that of the Things industry, and as a result the concept of 430 standardization also varies greatly. Before standardization occurs 431 in the ICT industry, many different proposals are made, from which 432 the best are selected. The final decision often changes, and 433 products have to be updated in order to follow the changes in 434 standards. But in the Things industry, the standards have to remain 435 unchanged for as long as possible because of the long product 436 lifetimes. Therefore, it takes a long time to determine when a 437 particular standard has become mature. When the Things industry goes 438 to implement a standard from the ICT industry, it feels that the 439 standard is incredibly fluid and seemingly undecided. Furthermore, 440 the standardization process of the two industries is very different, 441 and making it difficult to work on the other side when trying to 442 determine a standard. 444 2.6. Interoperability, fault isolation, and total quality assurance 446 2.6.1. Interoperability 448 The verification of interoperability poses a major challenge because 449 of the configuration used by multi-vendors. In addition to 450 interoperability between equipment, the ability to ensure backward 451 compatibility is also important for bringing about the IoT world. 453 If these capabilities cannot be provided, it will be very difficult 454 to create an IoT world in which past products can function. 456 2.6.2. Fault isolation 458 The method for fault isolation that may occur presents another 459 challenge. 461 Many PC users have experienced various kinds of problems. When their 462 PC experiences a problem, they have to isolate the faults by 463 themselves, with no one available to lend a helping hand. 465 In the IoT world, these issues become more difficult and complicated. 466 For example, a smart home is equipped with air conditioners, kitchen 467 supplies, and doors connected to the Internet. A problem that occurs 468 in the smart home poses a much more serious problem to end users than 469 an e-mail failure or problem with a PC. 471 If users are left to isolate the fault on their own, they may not 472 know which manufacturer they contact for repairs if they are unable 473 to isolate the fault on their own, or the manufacturer may refuse to 474 perform repairs because they fall outside the scope of their 475 responsibility. As can be seen, the issue is an important challenge 476 that will determine whether the B2C specific IoT world can be 477 established. 479 2.6.3. Quality assurance 481 The quality assurance of individual pieces of IoT equipment does not 482 guarantee the total quality of IoT. Since IoT involves connecting 483 multiple Things and communication, it is natural to assume that the 484 total service quality will depend on the quality of the IoT equipment 485 and devices, which can sometimes become bottleneck. However, users 486 are not aware of this. 488 As was mentioned previously in Section 2.6 issues that are not 489 directly related to the quality of an individual component can be 490 important factors in determining the quality of the service. In this 491 way, the quality of IoT is not decided by each individual Thing, but 492 needs to be considered as a service spread across the network. 494 2.7. Product design policy 496 2.7.1. Changes in design policy 498 The design policy has to be changed from placing emphasis on the high 499 functionality of a single product to stressing the singular function 500 of individual products as well as how they work in coordination with 501 other products. For many years, the Things industry has focused on 502 producing high functionality products with added value. But in the 503 IoT era, the implicit assumption is to confine Things to their basic 504 function and enhance the level of coordination between Things, rather 505 than focusing on the added value. Simplified Things must be able to 506 be controlled with an external application that can also be used by 507 the Things of cross manufacturers. 509 Given this situation, the Things industry faces the challenge of 510 adopting a completely different policy. During the meeting with the 511 manufacturing industries, we could sense their difficulty in 512 understanding and recognizing the need to change the policy. 514 2.8. Various technology restrictions within actual usage 516 2.8.1. Using radio waves 518 There are many cases that have provided us with insight about issues 519 related to the use of radio waves in IoT (such as the wave traveling 520 range and whether or not it travels further than stated in 521 assumptions available). The suppliers or providers who configure IoT 522 are not always wave communication technology experts. People who are 523 unfamiliar with radio waves seem to think that waves travel from 524 antenna to antenna in a straight line, and that they can be blocked 525 by obstacles. As a result, they often ask questions about how many 526 meters radio waves can travel or whether radio waves can actually 527 travel. Few people understand the fact that the emitted radio waves 528 are reflected from various locations and are superimposed at the 529 reception point where they are received, or that depending on how 530 waves are reflected a change in the reception signal intensity, 531 called fading, may occur. The lack of engineers who can advise on 532 specialized matters such as these poses a major obstacle. 534 2.8.2. Batteries 536 The power capacity and lifetime of batteries represent another set of 537 challenges similar in nature to the issue of radio waves traveling 538 distance. There are questions such as the difference between the 539 real and catalog specifications, as well as factors that affect the 540 battery power capacity. The IoT providers, who are also users of 541 IoT, have to solve these issues, while these are difficult problems 542 even for experts. 544 2.8.3. Wiring 546 The incredible amount of wiring and its complexity (power lines and 547 communication lines) pose major challenges. The complexity of 548 wiring- such as the large number of sensors and equipment, the power 549 lines that drive them, and the communication lines that connect them 550 to the network for acquiring information-is to the point that people 551 doing IoT installation work will start wishing for a wire harness. 552 In addition, the installation of cables and electric work are often 553 done by different engineers. This make the issue even more 554 complicated. 556 2.8.4. Being open 558 A single company alone cannot make all the commodities for IoT. The 559 IoT world needs to be open, and this can only be achieved with the 560 cooperation of many different industries. Up until now, companies in 561 the Things industry have developed products in a closed loop process, 562 seeking to capture users with their company's own products. For this 563 reason, they lack an open design concept of interoperability. Today, 564 an entirely new design concept is needed to design products that can 565 interconnect with the products of other companies. 567 3. Non-technical Challenges 569 3.1. Changing the product paradigm 571 3.1.1. Ecosystems 573 While the goal of setting up IoT is to generate new value, it may 574 actually lead to the destruction of the ecosystems in which 575 industries operate. In the IoT era, the traditional vertically 576 integrated way of producing Things in manufacturing industries will 577 consume too much time and cost. This approach also makes it 578 difficult to incorporate the ideas of other cultures. The need for 579 paradigm shift is easy to understand, but difficult to implement. 580 Promoting this shift will pose a management challenge that requires a 581 considerable amount of skill and effort to overcome. 583 3.1.2. Coordination and significant changes in strategy 585 It will become necessary to run businesses jointly with new partners, 586 as well as cooperate and work in coordination with other industries 587 and competitors. This issue-even when it is fully understood-will be 588 very difficult to address and put into practice. 590 We have seen instances in which only a limited amount of information 591 was given when parties exchanged opinions. There have also been 592 instances in which communication was difficult because of differences 593 in terminology and culture. 595 3.1.3. Competition with existing industries 597 The issue of competition with existing industries often arises when 598 attempts are made to change or reform a business model change or 599 reform. This issue can also be viewed as the reorganization of 600 industries, rather than competition between existing industries. 601 However, this realignment of industries is difficult to move forward 602 in the absence of supervisors. 604 3.2. Benefits 606 3.2.1. Rising costs and monetization 608 Introducing IoT within products will cause costs to go up, and yet 609 the benefits it provides are unclear. There is no specific killer 610 application available, and the number of users will not rise 611 immediately. Therefore, finding a way to make the business 612 profitable will be very difficult. This issue is especially 613 difficult for businesses and products that rely on cost reductions to 614 deliver low prices that make them competitive. 616 3.3. Information security and privacy of social systems 618 3.3.1. Classification of ownership, location, and the usage of data 620 There are many questions regarding the wide variety of data gathered 621 from IoT equipment, including questions related to ownership, storage 622 location, and the authorization to grant a license to use data. 623 These need to be addressed so that the system and equipment can be 624 accepted by society. 626 For example, if a company installs a door in a house that gathers 627 data on the opening and closing of the door, questions about the data 628 will arise. Does it belong to the users or the company? Can another 629 company use this data? 631 3.4. Disclosure of data 633 3.4.1. Side effects and malicious use potentially caused by the 634 disclosure of data 636 For example, it has been shown that the electricity smart meter can 637 lead to burglary because it shows when electricity is used and not 638 used, providing an indication of the time when no one is home. This 639 particular example demonstrates the importance of ensuring 640 information security and privacy. 642 3.5. Preparing social support 644 3.5.1. Regulations 646 Systems of laws and regulations are important for ensuring the safety 647 of the conventional products, but they can also be a barrier for 648 innovation. 650 IoT can be affected by laws and regulations at home and abroad, and 651 can also be influenced by regulations that extend across multiple 652 countries. Regulatory authorities need to monitor IoT carefully and 653 adjust the regulations and laws they oversee in a way that does not 654 negatively impact the global competition environment. 656 3.5.2. Corporate social responsibility 658 In addition to pursuing profit, companies that promote IoT also need 659 to improve the benefits offered to users and society 661 3.5.3. Customization for individual customers 663 There is an ongoing shift in demand away from general products to 664 customized products for individual customers. This could also be 665 viewed as a shift away from manufacturing businesses to service 666 businesses. IoT will play an important role in this shift. 668 Instead of manufacturing Things through mass production, it will be 669 easier to customize a product by moving some of the functions to an 670 application. Likewise, the manufacturing business also needs to move 671 forward with the previously mentioned paradigm shift in order to 672 achieve customization 674 3.5.4. IoT literacy of the users 676 Because Things are connected to the network, apps will need to be 677 created. Some of these will serve as the interface with which people 678 interact with IoT. 680 In the IoT era of the future, users will need to possess a certain 681 amount of knowledge about IoT apps 683 3.5.5. Individual vs. family 685 The issue of whether the data of Things in the house belongs to the 686 family or the individual will largely affect data analysis and the 687 handling of privacy. 689 As was mentioned in Section 2.1.2, the spouse could later object to 690 the head of the household granting authorization to use data. 692 4. Information Security Considerations 694 Meetings with the players in various IoT fields provided insight into 695 information security issues. These issues are described in the 696 following sections. 698 o Section 2.1.2 Physical damper of devices 700 o Section 2.1.2 Product lifetime and encryption strength 702 For details, please see the corresponding text. 704 5. Privacy Considerations 706 Similarly, issues regarding privacy are described in the following 707 sections. 709 o Section 2.1.2, Section 3.3.1 Ownership of the data 711 o Section 3.4.1 Data disclosure and malicious use 713 o Section 3.5.5 Individual vs. family 715 For details, please see the corresponding text. 717 6. Acknowledgments 719 We would like to thank the foundation the promotion of industrial 720 science and its RC-88 member companies for their cooperation. 722 And we also appreciate Ministry of Internal Affairs and 723 Communications. 725 Authors' Addresses 727 Hiroyuki Baba 728 The University of Tokyo 729 Institute of Industrial Science 730 4-6-1 Komaba 731 Meguro-ku, Tokyo 153-8505 732 Japan 734 Email: hbaba@iis.u-tokyo.ac.jp 736 Yoshiki Ishida 737 Japan Network Enabler Corporation 738 21F KDDI Otemachi Bldg. 739 1-8-1 Otemachi 740 Chiyoda-ku, Tokyo 100-0004 741 Japan 743 Email: ishida@jpne.co.jp 745 Takayuki Amatsu 746 Tokyo Electric Power Company, Inc. 747 1-1-3 Uchisaiwai-cho 748 Chiyoda-ku, Tokyo 100-8560 749 Japan 751 Email: amatsu.t@tepco.co.jp 752 Koichi Kunitake 753 BroadBand Tower, Inc. 754 Uchisaiwaicho Tokyu Bldg. 755 1-3-2 Uchisaiwai-cho 756 Chiyoda-ku, Tokyo 100-0011 757 Japan 759 Email: kokunitake@bbtower.co.jp 761 Kaoru Maeda 762 Lepidum Co. Ltd. 763 village Sasazuka III 6F 764 1-30-3 Sasazuka 765 Shibuya-ku, Tokyo 151-0073 766 Japan 768 Email: maeda@lipidum.co.jp