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 must be specifically managed and used in a legally compliant manner.

IoT Governance is intended to form the strategic foundation for transparency, control and trust in an increasingly digital infrastructure. How this works, you will find out here. 

IoT Governance refers to the entirety of leadership, control and management mechanisms for the safe and structured management of IoT applications, devices and data flows. It is not just about technology: what is essential is that your company strategically aligns its IoT activities – across departments, processes and platforms.  

At its core, IoT Governance aims to design responsibilities, roles and processes around connected devices and their data transparently and efficiently. This creates a basis for your company to make the growing complexity of IoT environments manageable. In addition to security, compliance with internal and external requirements and the responsible handling of data – both ethically and economically – play a central role. 

For IoT Governance to be more than just a buzzword, companies need tangible structures, processes and technologies. In practice, this means clearly distributing responsibilities, making data flows transparent and specifically controlling the use of connected devices. The following examples show how this can be implemented. 

A company uses a central platform to register, monitor and manage all IoT devices across the enterprise. This platform ensures that only authorised devices are integrated and that all activities are logged. This way, those responsible always keep track of device status, connectivity and security gaps.

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

A dedicated company-wide body controls all new IoT projects. This governance board checks whether planned initiatives comply with the company-wide IoT strategy, internal standards and external industry requirements. The body defines responsibilities, oversees projects throughout their lifecycle and ensures that security and strategic objectives serve as binding guidelines. 

Through an integrated solution, the company ensures that all deployed devices receive regular and automated security updates. This measure systematically reduces the attack surface and prevents known security gaps in hardware or firmware.

As part of IoT Data Governance, the company classifies all collected IoT data according to its sensitivity (for example “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. 

IoT Governance is not just a matter of advantages but also of obligations. Especially in the European and German context, there are numerous legal regulations that govern the use of IoT technologies:  

• The General Data Protection Regulation (GDPR) is the central European framework for the protection of personal data – also 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) expands 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 the sharing of data, strengthens the position of users and companies vis-à-vis manufacturers or platform operators, and provides clarity on 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 requirements for the safety of products, including digital devices, and is particularly relevant for IoT hardware. In addition, the EU is introducing the planned Cyber Resilience Act (EU Regulation on Cyber Resilience), which for the first time sets out uniform security requirements for digital products. 

• The Telecommunications-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 particularly high security standards and to register certain IoT systems with the BSI (Federal Office for Information Security). 

How can you comply with regulations and implement IoT Governance effectively at the same time? With the following tips, you can create a long-term secure, transparent and scalable IoT structure while also meeting regulatory requirements.  

• Assemble an interdisciplinary IoT governance team: Include experts from IT, data protection, law, compliance and business departments in your governance structures. This ensures that technological, legal and operational perspectives are systematically considered. 

• Define clear responsibilities for all IoT roles: Clearly specify who is responsible for the management of devices, data flows, security and data protection. Avoid grey areas by documenting responsibilities in writing and updating them regularly. 

• Develop policies for data management and device operation: Formulate rules for the collection, storage, processing and also deletion of IoT data. Standardised processes and workflows make it easier to implement and monitor the requirements. 

• Implement an IoT monitoring and management platform: With modern tools, you can centrally monitor all IoT devices, interfaces and data flows and detect 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 assess and secure your data according to criteria – such as personal reference, business relevance or regulatory significance. 

• Train employees regularly on risks and obligations: Raise awareness among your teams about topics such as data protection, device security, privacy and legal requirements. Through training and awareness campaigns, you ensure that everyone knows and can implement the company guidelines. 

• Anchor IoT Governance in your digital strategy: Governance should not be an isolated project but an integral part of your digital transformation. Integrate governance goals into your IT and innovation strategy to leverage synergies and remain competitive in the long term. 

For the successful implementation of IoT Governance, you need a clear strategy, defined responsibilities, powerful computing, suitable security technologies and structured data processes. At the same time, it is necessary 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.