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IoT Governance in Companies: Combining Control, Security and Compliance

The Internet of Things (IoT) is changing how companies collect data, control processes and develop new services. However, increasing connectivity not only creates new potential, but also greater complexity. After all, data flows, interfaces and security requirements need to be controlled in a targeted manner and used in a legally compliant way.

IoT governance is intended to form the strategic foundation for transparency, control and trust in an increasingly digital infrastructure. Find out how it works here. 

In brief

  • IoT governance creates clear structures, roles and processes to control data flows, interfaces and devices securely and efficiently.
  • Legal requirements such as GDPR, NIS2, EU Data Act, ProdSG, Cyber Resilience Act and IT Security Act 2.0 require transparency, security and compliance in the IoT.
  • Practical measures include a central IoT platform, clear data usage guidelines, a governance board, automated security updates and data classification.

Meaning and Awareness: Definition of IoT Governance

IoT governance refers to all management, control and steering mechanisms for the secure and structured management of IoT applications, devices and data streams. This is not just about technology: it is essential that your company strategically aligns its IoT activities – across different departments, processes and platforms.

At its core, IoT governance aims to make the responsibilities, roles and processes surrounding connected devices and their data transparent and efficient. This creates a foundation for your company to manage the increasing complexity of IoT environments. In addition to security, compliance with internal and external requirements plays a major role.

What is the difference between IoT Governance and IoT Data Protection?

IoT governance provides the overarching framework within which you develop and implement data protection measures for your IoT environment. IoT data protection, on the other hand, focuses on protecting personal data that IoT devices collect, transmit or process. While IoT governance defines structural and operational processes, data protection ensures that companies respect user privacy and avoid data breaches.

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Examples of how you can implement IoT governance

However, for IoT governance to be more than just a buzzword, companies need tangible structures, processes and technologies. In practice, this means clearly assigning responsibilities, making data flows transparent and controlling the use of connected devices in a targeted manner. The following examples show how this can be implemented.

1. Example: Central IoT management platform

A company uses a central platform to register, monitor and manage all IoT devices across the organisation. This platform ensures that only authorised devices are connected and that all activities are logged. This allows those responsible to keep track of device status, connectivity and security vulnerabilities at all times. 

2. Example: Data usage guidelines

Clear internal guidelines specify which data IoT systems are permitted to collect, store and process. These guidelines also define who in the company can access which data and in what context. This ensures data protection and makes the handling of sensitive information more transparent. 

3. Example: Governance Board

A dedicated company-wide committee oversees all new IoT projects. This Governance Board checks whether planned projects are in line with the company-wide IoT strategy, internal standards and external industry requirements. The committee defines responsibilities, monitors projects throughout their entire life cycle and ensures that security and strategic objectives serve as binding guidelines. 

4. Example: Automated security updates

The company uses an integrated solution to ensure that all devices in use receive regular, automated security updates. This measure systematically reduces the attack surface and prevents known security vulnerabilities in the hardware or firmware.

5. Example: Data classification according to sensitivity

As part of IoT data governance, the company classifies all collected IoT data according to its sensitivity (e.g. “business-critical”, “personally identifiable” or “public”). This classification influences how data may be stored, secured and further processed. Access rights and processing obligations are then also based on these defined data classes.

You must observe these guidelines and regulations when it comes to IoT governance

However, IoT governance is not just a question of advantages, but also of obligations. This is because there are a large number of legal regulations governing the use of IoT technologies, particularly in Europe and Germany:  

  • The General Data Protection Regulation (GDPR) is the central European framework for the protection of personal data – including in the context of IoT – and obliges companies to implement technical and organisational data protection measures.
    The revised NIS2 Directive (EU Directive on Network and Information Security) extends the security requirements for critical infrastructure. It states that affected companies must establish measures and processes to protect their digital systems.
  • The EU Data Act regulates access to and sharing of data, strengthens the position of users and companies vis-à-vis manufacturers or platform operators, and clarifies rights to IoT data. In the context of IoT data governance, the Data Act obliges companies to establish fair, transparent and interoperable data ecosystems.
  • The Product Safety Act (ProdSG) contains specifications on the safety of products, including digital devices, and is particularly relevant for IoT hardware. In addition, with the planned Cyber Resilience Act (EU Regulation on Cyber Resilience), the EU is introducing uniform security requirements for digital products for the first time.
  • The Telecommunications and Telemedia Data Protection Act (TTDSG) specifically regulates the processing of personal data by telecommunications and telemedia providers in Germany. This affects many IoT services.
  • The IT Security Act 2.0 obliges operators of critical infrastructures in Germany to adhere to particularly high security standards and to register certain IoT systems with the BSI (Federal Office for Information Security).  

7 tips for successful implementation of IoT governance

How can you comply with regulations and implement IoT governance effectively at the same time? The following tips will help you create a secure, transparent and scalable IoT structure for the long term while meeting regulatory requirements.  

  • Put together an interdisciplinary IoT governance team: Involve specialists from IT, data protection, legal, compliance and specialist departments in your governance structures. This ensures that technological, legal and operational perspectives are systematically taken into account.
  • Define clear responsibilities for all IoT roles: Clearly define who is responsible for managing devices, data flows, security and data protection. Avoid grey areas by documenting responsibilities in writing and updating them regularly.
  • Develop guidelines for data management and device operation: Formulate rules for the collection, storage, processing and deletion of IoT data. Standardised processes and workflows make it easier to implement and monitor the guidelines.
  • Implement an IoT monitoring and management platform: With the help of modern tools, you can centrally monitor all IoT devices, interfaces and data streams and identify risks, security gaps or governance violations at an early stage.
  • Classify IoT data according to sensitivity and protection requirements: An important step is to systematically evaluate and secure your data according to criteria as described above – for example, according to personal reference, business relevance or regulatory significance.
  • Train employees regularly on risks and responsibilities: Raise awareness among your teams about topics such as data protection, device security, privacy and legal requirements. Training and awareness campaigns ensure that everyone knows and can implement company guidelines.
  • Embed IoT governance in your digital strategy: Governance should not be an isolated project, but an integral part of your digital transformation. Incorporate governance goals into your IT and innovation strategy to leverage synergies and remain competitive in the long term.  

Implementing IoT governance with Deutsche Telekom

Successful implementation of IoT governance requires a clear strategy, defined responsibilities, powerful computing, suitable security technologies and structured data processes. At the same time, it is important to comply with laws and industry standards. Deutsche Telekom therefore supports you with a comprehensive range of special tariffs and SIM cards for stable and secure IoT connectivity, as well as future-proof IoT solutions.

IoT Connectivity

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IoT Connectivity

The right IoT connectivity coordinates IoT connections across platforms, integrates devices and data via API, and enables global control with the highest security standards. You can manage your IoT projects flexibly, efficiently, and independently of manufacturers.

Potrait photo Annalena Rauen

Annalena Rauen

Marketing Manager IoT

Back in 2016, Anna worked on IoT topics at Deutsche Telekom for the first time. Since then, she has been supporting customer best practices in a wide range of industries – always focusing on the benefits that the Internet of Things can provide. Her IoT blogposts describe real use cases and the value these innovations add to market players, their business models, and even entire industries.

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