The IoT value chain
- #IoT
- #Electronics

Fabrice Durand DJIATSA
How to design a secure IoT solution step by step
The Internet of Things (IoT) has transformed how we interact with the world around us, paving the way for intelligent connectivity and innovative applications. However, behind every smart device lies a complex value chain that extends from the design of the connected objects to the end-user experience.
In this article, we will explore the critical elements of this IoT value chain, from the crucial role of sensors and gateways to secure data management, focusing on cybersecurity that runs through the entire process. Set off on a journey to the heart of the IoT ecosystem, where innovation meets security to shape tomorrow's technological landscape.
Value chain 1: Connected Objects
Role: connected objects, equipped with sensors and sometimes actuators, collect data from the environment.
Diversity: They vary in size, shape, and function, covering areas such as healthcare, industry, agriculture, smart cities, etc.
Connected objects are equipped with integrated circuits, sensors, and antennas to communicate with other connected objects or with management systems.
Interconnection: connected objects communicate with each other and other parts of the value chain via standardized communication protocols. As an example of connected objects:
- Smart thermostats, like Nest, can be programmed to regulate a home's temperature based on its occupants' habits.
- Connected lamps, like Philips Hue, can be controlled remotely via a mobile app to add color and lighting effects to a room.
- Connected vehicles like luxury cars are equipped with onboard navigation, entertainment, and communication systems.
Security
Authentication and Authorization: Implement robust authentication mechanisms to ensure only authorized devices can connect to the network.
Security updates: Ensure the ability to update connected object software to address security vulnerabilities.
Secure Firmware: Implement secure update mechanisms for connected object firmware to address vulnerabilities and improve security.
Value chain 2: Gateway
The gateway is a key element of the Internet of Things (IoT), which connects connected objects to a telecommunications network. The gateway is a device that converts data from connected objects into a digital format that management systems can understand.
Aggregation and Communication: the gateway acts as a central point to aggregate data from connected objects, prepare it for transmission, and transmit it to the IoT platform.
Protocols: it can support various communication protocols to ensure interoperability between connected objects
We have as an example:
- Wi-Fi gateways, like Wi-Fi routers, allow connected objects to be connected to the internet.
- Bluetooth gateways, like Bluetooth signs, allow connected objects to be connected to a computer or smartphone.
- LoRaWAN gateways, like LoRaWAN hubs, connect connected objects to a LoRaWAN network for low-power communication.
Security
Encryption: Apply encryption to secure communication between connected objects and the gateway.
Traffic Filtering: Implement filtering mechanisms to detect and block intrusion attempts.
Value chain 3: Storage - Data Lake and Data Warehouse
Hot storage (Data Lake): used to store data in real-time or near real-time, often in high-performance databases, to facilitate rapid access to current data. Generally, this is data that has already undergone processing or filtering.
Cold Storage (Data Warehouse): used to store long-term historical data, usually in less expensive storage systems but with longer access times. They are primarily raw data.
Security
Access Control: Implement rigorous access controls to ensure only authorized individuals can access stored data.
Data Encryption: Encrypt sensitive data in hot and cold storage to protect it against unauthorized access.
Value Chain 4: IoT Platform
The IoT platform is a set of tools and services that allow you to manage connected objects. It makes it possible to collect, store, analyze, and use data collected by connected objects.
Collection and Preprocessing: aggregates data, prepares it for analysis and manages IoT devices.
Analytics and AI: integrates real-time analytics and artificial intelligence tools to extract actionable insights from data.
Security: incorporates security mechanisms to protect data, devices, and communications.
Examples:
- IoT management platforms, such as AWS IoT, Microsoft Azure IoT, Google Cloud IoT core, and ThingWorx, help manage connected objects and the data they collect.
- IoT development platforms, like Eclipse IoT, IoT.js, allow you to create IoT applications.
Security
Identity Management: Implement identity management mechanisms to ensure only authorized users and devices can access the platform.
Threat Monitoring: Integrate threat detection systems to detect and respond to suspicious activity quickly.
Value chain 5: User-side applications
User Interfaces: provides easy-to-use dashboards and user interfaces to allow end users to interact with IoT data.
Decision Making: Provides actionable insights to support decision-making in various industries such as facilities management, healthcare, etc.
Security
Strong Authentication: Require strong user authentication to prevent unauthorized access to IoT applications and data.
Activity Auditing: Implement auditing mechanisms to record user activities and detect suspicious behavior.
Value Chain 6: Third Party Applications and API Keys
Open Ecosystem: Third-party applications can use programming interfaces (APIs) to access IoT platform data and functionality.
Monetization: Third-party developers can create specialized applications, expanding the IoT ecosystem and creating monetization opportunities. Each element in this chain plays an essential role in ensuring the smooth functioning of the IoT ecosystem, from data collection to the provision of value-added services. Security, interoperability, and efficient data management are crucial aspects of the success of IoT implementation.
Security
Securing API Keys: Protect API keys from leaks using methods such as OAuth and ensure that only authorized applications can access the data.
Access Controls: Implement strict access controls to regulate third-party applications' access to IoT platform features and data.