Sub Working Group Outline on 

Augmented Logistics and Smart Supply Chains

Sub-Group Members

Robby Moss, 

Tom Katsioulas

Steve Griffith

Mike Bergman

Ann Mehra
Sub Working Group Outline on 

Augmented Supply Chain Logistics
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Summary of Recommendations on Supply Chain Logistics

R01 - National IoT Strategy for adoption of IoT in supply chain logistics

R02 - Promote standards and protocols for IoT in supply chain logistics

R03 - Provide financial incentives to encourage adoption of IoT in supply chain logistics

R04 - Foster PPPs focused on adoption of IoT in supply chain logistics

R05 - Invest in workforce development focused on IoT in supply chain logistics

R06 - Strengthen cybersecurity measures focused on IoT in supply chain logistics

R07 - Promote international collaboration on adoption of IoT in supply chain logistics

R08 - Monitor and evaluate progress of adoption of IoT in supply chain logistics

R09 - Select mix of policies, incentives and requirements to support sustainable, scalable 

growth in domestic IoT manufacturing supply chain

3
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

National IoT Strategy for adoption of IoT in supply chain logistics

Establish a comprehensive 

national IoT strategy that 

outlines clear goals and 

objectives for IoT adoption in 

supply chain management.

Justification

• Drive economic growth and 

competitiveness

• Provide guidance and support for 

businesses to adopt and integrate 

IoT solutions within supply chains

• Job creation and workforce 

development

• Help establish guidelines, 

standards and best practices for 

IoT security and data protection

• Provide guidelines and assurance 

that benefits are distributed 

equitably

Implementation • Stakeholder engagement

• Focus on key areas where IoT 

can provide the greatest 

benefit

• Support innovation and 

research and development 

(R&D)

Barriers • Interagency coordination

• Resistance to change

• Cybersecurity and data privacy 

concerns

• Legal and regulatory barriers

• Balancing innovation and 

regulation

Agencies • Department of Commerce 

(DOC)

• Federal Trade Commission 

(FTC)

• Department of Transportation 

(DOT)

• Department of Energy (DOE)

• National Institute of Standards 

and Technology (NIST)

Federal considerations • Aligning strategy with broader 

national priorities and policies

• Engaging with industry associations 

and international organizations

• Coordinating efforts and resources 

across federal agencies

• Address concerns and needs of all 

stakeholders

4
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Promote standards and protocols for IoT in supply chain logistics

Promote standards and protocols 

for IoT technology in supply chain 

management to provide 

assurance of interoperability, 

reliability, and security across 

various IoT systems and devices. 

Justification

• Interoperability

• Scalability

• Innovation and competition

• Cybersecurity and data privacy

• Simplified integration and 

maintenance

• Cost savings

• Regulatory compliance

Implementation • Include diverse range of 

stakeholders – businesses, 

technology providers, 

academia, government 

agencies

• Prioritize critical areas – data 

exchange, device 

interoperability, security

• Build on existing standards

Barriers • Resistance to standardization

• Fragmentation

• Cost and resource constraints

• Rapid technological 

advancements

Agencies • NIST

• FTC

• Department of Commerce

• Federal Communications 

Commission (FCC)

Federal considerations • Provide regulatory framework 

supporting standardization efforts

• Collaborate with international 

organizations and foreign 

governments

• Offer financial and technical 

support to businesses, particularly 

SMB to assist with adoption and 

compliance

• Monitor and evaluate effectiveness

5
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Provide financial incentives to encourage adoption of IoT in supply chain logistics

Establish and provide financial incentives 

aims to encourage adoption of IoT 

technologies in supply chain operations 

by reducing initial investment costs and 

perceived risks associated with 

implementation of IoT solutions.

Justification

• Encourage investment

• Stimulate innovation

• Enhance competitiveness

• Create jobs and economic 

growth

• Promote sustainability

Implementation • Identify appropriate incentives

• Define eligibility criteria

• Coordinate across federal 

agencies

• Monitor and evaluate

• Raise awareness and provide 

technical assistance

Barriers • Budget constraints

• Political opposition

• Bureaucratic hurdles

• Inefficient allocation of 

resources

• Market distortion

• Difficulty measuring impact

• Lack of awareness

Agencies • DOC

• DOT

• DOE

• Small Business Administration 

(SBA)

• National Science Foundation (NSF)

• Department of Agriculture (USDA)

• Environmental Protection Agency 

(EPA)

• Department of Defense (DoD)

• Department of Labor (DOL)

Federal considerations • Targeting the right recipients

• Balancing public and private 

investment

• Providing assurance of fairness 

and transparency

• Encouraging innovation

• Collaboration with industry and 

academia

6
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Foster PPPs focused on adoption of IoT in supply chain logistics

Establish and foster public-private 

partnerships (PPPs) focused on IoT 

adoption to facilitate collaboration 

and knowledge sharing between 

government agencies, businesses, 

technology providers, and academia. 

Justification

• Leveraging resources and 

expertise

• Risk sharing

• Accelerating technology 

adoption

• Addressing regulatory 

challenges

• Fostering innovation

• Enhancing global 

competitiveness

• Building trust and cooperation

Implementation • Identify key stakeholders

• Establish collaborative 

framework

• Define clear goals and 

objectives

• Develop joint projects and 

initiatives

• Effective communication and 

coordination

Barriers • Misalignment between public 

and private sectors

• Differing priorities and 

objectives

• Intellectual property (IP) and 

data privacy concerns

• Limited resources

Agencies • DOC

• DOT

• DOE

• SBA

Federal considerations • Address alignment and 

communication issues

• Align priorities and objectives

• Protect IP and data

• Allocate resources efficiently

7
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Invest in workforce development focused on IoT in supply chain logistics

Invest in and promote education and 

workforce development focused on IoT 

to address growing demand for skilled 

professionals capable of designing, 

implementing, and managing IoT 

systems in supply chain operations. 

Justification

• Addressing skills gap

• Enhancing competitiveness

• Fostering innovation

• Supporting digital 

transformation

• Encouraging job creation

• Promoting social inclusion

• Long-term sustainability

Implementation • Identify skill requirements

• Develop targeted curricula

• Expand access to education and 

training

• Encourage industry-academia 

partnerships

• Focus on reskilling and upskilling

• Promote STEM education

• Establish performance metrics

Barriers • Insufficient funding

• Resistance to change

• Difficulty in identifying skill 

requirements

• Skills mismatch

Agencies • Department of Education

• Department of Labor

• National Science Foundation

• Department of Commerce

Federal considerations • Allocate sufficient resources

• Foster collaboration between 

industry and academia

• Continuously evaluate 

performance and improve 

effectiveness of training and 

education

8
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Strengthen cybersecurity measures focused on IoT in supply chain logistics

Strengthen cybersecurity measures 

focused on IoT across supply chain 

networks to address concerns around 

data privacy, security, and potential risks 

associated with increased connectivity 

and interdependence of IoT systems. 

Justification • Protecting sensitive data

• Providing assurance of 

operational

• Maintaining trust

• Compliance with regulations

• Enhancing competitiveness

• Addressing evolving threats

• Fostering innovation

Implementation • Develop comprehensive 

cybersecurity framework for IoT in 

supply chain

• Promote adoption of best practices 

and standards

• Encourage information sharing

• Invest in security technologies

• Promote security-by-design 

principles

• Raise awareness and provide 

training

Barriers • Limited resources

• Complexity of supply chains

• Resistance to information 

sharing

• Evolving threats

Agencies • Department of Homeland 

Security (DHS)

• NIST

• DOC

• FTC

Federal considerations • Support research and development

• Allocate resources to facilitate 

training and awareness

• Encourage collaboration among 

industry stakeholders and 

government agencies

• Monitor and update cybersecurity 

policies, regulations and best 

practices adapting to evolving 

threat landscape

9
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Promote international collaboration on adoption of IoT in supply chain logistics

Promote international collaboration in IoT 

adoption across global supply chains to 

facilitate sharing knowledge, best 

practices, and resources between 

countries and regions, driving innovation 

and accelerating widespread adoption of 

IoT technologies in supply chain operations 

worldwide.

Justification

• Global nature of supply chains

• Harmonization of standards 

and regulations

• Addressing global cyber 

threats

• Leveraging global expertise

• Fostering innovation

• Building trust

• Addressing social and 

environmental challenges

Implementation • Establish bilateral and multilateral 

agreements

• Participate in international forums and 

organizations

• Share information and best practices

• Collaborate on research and 

development

• Promote capacity building

• Identify key international partners

• Leveraging existing diplomatic channels

• Coordinate with relevant federal 

agencies

Barriers • Differing priorities and interests

• Trust and data privacy concerns

• Regulatory and legal barriers

Agencies • Department of State

• DOC

• DHS

• NIST

• FTC

Federal considerations • Align collaboration efforts with 

national priorities

• Respect priorities of partner 

countries

• Develop clear objectives and 

mutually beneficial goals

• Effective communication and 

coordination among federal 

agencies and international partners

• Remain adaptable to evolving 

global landscape 10
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Monitor and evaluate progress of adoption of IoT in supply chain logistics

Monitor and evaluate progress to 

provide assurance that IoT adoption 

efforts in supply chain logistics are on 

track, effectively addressing identified 

challenges and opportunities, and 

delivering desired outcomes. 

Justification

• Assess effectiveness and 

measure impact

• Identify areas for 

improvement

• Allocate resources efficiently

• Enhance accountability

• Facilitate knowledge sharing

• Inform future strategies

Implementation • Establish clear goals and objectives

• Develop relevant performance 

indicators

• Implement data collection and reporting 

mechanisms

• Conduct periodic assessments

• Culture of continuous improvement

• Collaborate with stakeholders and 

assign responsibility

• Develop a monitoring and evaluation 

plan

• Allocate resources

Barriers • Potential for lack of clear goals 

and objectives

• Inadequate data collection and 

reporting mechanisms

• Resource constraints

• Resistance to change

Agencies • DOC

• DOT

• DHS

• NIST

• FTC

Federal considerations • Clear communication of goals, 

objectives, and expectations

• Collaborate with relevant 

stakeholders

• Be transparent in sharing 

results, fostering trust and 

accountability

• Be adaptable and responsive to 

new information and insights

11
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Select mix of policies, incentives and requirements to support sustainable, scalable 

growth in domestic IoT manufacturing supply chain

The recommended policies, incentives and 

requirements are relevant to the 

transportation sector as it becomes 

increasingly connected, integrated, and 

ultimately autonomous. Rapid 

technological advances are further 

augmented by communication and IT, 

including IoT.

Justification

• Tighter domestic preference 

requirements could create supply 

constraints and prevent the 

manufacturers from meeting even 

modest deployment goals.

• May be difficult for U.S. manufacturing 

capacity to meet increased demand 

that would be sparked by anticipated 

federal investment/incentives.

• May be no domestic alternatives for 

components and subcomponents, 

limiting the ability of equipment 

providers to control domestic content. 

• Burden related to federal domestic 

preference requirements will increase 

as subcomponents become smaller, 

more integrated.

Implementation • Phase in domestic contact 

requirements.

• Accelerate domestic manufacturing with 

investment tax credit for capital costs.

• Provide clear rules on domestic content 

requirements.

• Avoid rules that require determining the 

country of origin of subcomponents.

• Component test should include all costs 

associated with the manufacturing of a 

product.

• Allow 100% of manufacture value added 

(MVA) or substantial transformation to 

be classified as domestic content in 

component tests.

• Designate countries outside US for 

allowed procurement of components.

Barriers• Current Supply Chain constraints 

meeting domestic content 

requirements.

• Funding constraints: huge initial capital 

cost investment to build up new 

domestic manufacturing plants.

• Resource constraints: need to be an 

influx of skilled engineers, technicians 

to support domestic buildup.

Agencies • DOC

• DOT

• NIST

• Federal Highway 

Administration (FHWA)

• National Highway Traffic Safety 

Administration (NHTSA)

Federal considerations • Extended phase in period necessary to 

avoid supply shortages and provide 

domestic manufacturers and their 

suppliers with sufficient time to develop 

domestic manufacturing capabilities.

• For domestic content requirement, 

guidelines on how they apply across all 

funding and procurement programs.

• Provide guidance to implementing state 

agencies.

12
Sub Working Group Outline on 

Smart Supply Chain Traceability 
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Summary of Recommendations on Supply Chain Traceability

14

R01 - Encourage Global Identifier Standards for Supply Chain Traceability

R02 - Promote Trusted Architectures for Provenance & Traceability

R03 - Incentivize IoT Systems Supply Chains to Adopt Trusted Traceability

R04 - Promote Creation of Traceable and Trusted IoT Network Ecosystems

R05 - Accelerate Evolution of Trusted Digital Threads Across Value Chains

R06 - Incentivize the Creation & Growth of Trusted Data Marketplaces 

R07 - Subsidize Digitalization of Enterprises in the IoT Value Chain

R08 - Promote Creation and Orchestration of Trusted Value Chains

R09 - Subsidize Orchestrated Public-Private Partnerships Across Value Chains 

R10 - Establish Data Policies that Stimulate Economic Growth

R11 - Facilitate Creation of Data-driven Business Ecosystems

R12 - Evaluate Opportunities, Risks of Using AI in Supply Chains
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Encourage Global Identifier Standards for Supply Chain Traceability

R01

The Federal Government should 

encourage the use of Global 

Identifier Standards for supply 

chain traceability

Justification

• Improve security and supply chain 

transparency

• Reduce risk of counterfeit or 

tampered goods 

• Increase public health, safety, 

security and privacy 

• Promote environmental 

sustainability with greater visibility 

in product lifecycles

• Address market need for greater 

transparency and accountability, 

on origin and journey of products

• Enable creation of digital threads 

by tying workflow IDs to asset IDs

Implementation

• Incentivize suppliers to adopt 

global standards, such as GS1

• Encourage suppliers to use 

unique IDs for their corporation, 

products, parts, assets, etc.

• Provide resources and guidance 

to upgrade existing IT systems to 

support chain traceability IDs 

• Facilitate adoption of IoT product 

IDs linked to cybersecurity labels 

Barriers

• Resistance from suppliers to 

invest in ID infrastructure 

• Technical challenges for SMBs to 

implement methodologies for 

adopting identifier standards

• Need for collaboration among 

stakeholders in fragmented 

supply chains to cross-ref IDs

• Need for secure / interoperable 

databases for global ID handling

Agencies • DOC

• NIST

• DHS 

• CISA

• FDA

• SBA

Federal considerations

• Collaborate with international 

allies on global ID standards in 

line with US trade policy goals.

• Harmonize global ID standards 

to facilitate interoperability.

• Ensure agencies’ collaboration 

to incentivize use of Global IDs 

in their respective domains.

• Require the use of ID standards 

in all procurement contracts

15
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Promote Trusted Architectures for Provenance & Traceability

R02

Promote development and use 

of trusted hardware/software 

architectures for supply chain 

provenance, traceability, chain 

of custody and lifecycle mgmt.

Justification

• Enhance supply chain security 

and mitigate risks relate to 

compromised components

• Increase trustworthiness of 

critical systems for security, 

safety, and economic stability.

• Increase consumer confidence, 

prevent supply chain attacks 

and data breaches

• Improve supply chain security, 

chain of custody and lifecycle 

management (SBOM-HBOM)

Implementation

• Educate stakeholders on the 

benefits of trusted architectures.

• Promote industry adoption of 

via education and outreach.

• Incentivize suppliers to develop 

systems with trusted parts

• Develop guidelines to speed 

adoption of industry standards 

• Encourage collaboration PPPs

Barriers

• Lack of awareness of benefits 

of trusted architectures

• Resistance to invest or design 

due to implementation costs 

• Technical challenges linking 

to legacy infrastructure.

• Complexities in deploying 

trusted architectures at scale.

Agencies

• NIST

• DHS

• DOD

• DOC

• FTC

• CISA

• GSA 

Federal considerations

• Funding and budgets to 

incentivize industry suppliers

• Policies and regulations for 

use of trusted architectures.

• Coordinating efforts across 

Public-Private sectors

• Funding incentives to speed 

adoption and use at scale

16
Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Incentivize IoT Systems Supply Chains to Adopt Trusted Traceability

R03

Incentivize the Supply Chains to 

accelerate adoption of trusted 

traceability to ensuring security, 

integrity and trustworthiness of 

IoT devices and systems

Justification

• Improve confidentiality & integrity 

of IoT supply chain to prevent 

attacks, human/economic losses

• Accelerate IT/OT convergence, 

enhance efficiency in delivery of 

critical infrastructure services.

• Create a competitive advantage, 

foster innovation, enable SMBs 

and large companies to monetize

• Enable suppliers of IoT devices to 

become smart-connected-secure 

IoT suppliers and service providers 

• Enable the creation of connected 

ecosystems for end-to-end 

monetization and IoT growth DRAFT – Supply Chain Sub-Group - U.S. 

Implementation

• Financial incentives to companies 

that market trusted products 

• Require contractors and suppliers 

to follow traceability standards 

• Establish a certification process 

for electronics products to meet 

trusted traceability standards

• Facilitate partnerships with 

industry associations develop 

guidelines and best practices

Barriers

• Lack of awareness on risks and 

trusted traceability benefits 

• Lack of expertise and resources 

to develop traceability methods.

• Resistance due to complexity and 

cost of Confidentiality & Integrity

• Reluctance to invest due to IP 

protection and development cost

Agencies

• DHS

• DOD

• NIST

• FERC

• FCC

• DOE

• CISA

• EPA

• SBA

Federal considerations

• Develop financial incentives to 

offering traceable products/parts

• Promote methods for trusted 

traceability in line with executive 

orders and government priorities 

• Require contractors & suppliers to 

follow traceability standards 

• Promote orchestrated PPPs in to 

close value chain traceability gaps

17
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Promote Creation of Traceable and Trusted IoT Network Ecosystems

R04

Promote traceable and trusted 

IoT network ecosystems made 

of devices, systems, networks, 

and personas operating in 

connected IoT environments

Justification

• Trusted network ecosystems 

facilitate information sharing, 

innovation, data protection, and 

global cooperation & trade.

• Improve the security and 

resilience of critical infrastructure 

with information sharing, analytics 

and feedback for digital twins

• Enable trusted data exchanges, 

and protect against malicious 

attacks and data breaches.

• Manage threats and mitigate risks 

and consequences of economic, 

reputational and loss of life

Implementation

• Drive awareness on how trust is 

established in IoT networks.

• Promote interoperability 

programs for networks to 

operate securely and reliably

• Encourage the development and 

adoption of secure, trusted and 

interoperable IoT solutions

• Work with industry, academia, 

promote innovation and R&D

Barriers

• Cost of upgrading legacy systems, 

and supply chain processes. 

• Resistance to investing in trusted 

IoT network ecosystems

• Lack of awareness of importance 

of IoT security and trust. 

• Limited interoperability between 

IoT devices and networks.

• Securing systems that were not 

designed with security in mind.

Agencies

• DHS

• NIST

• FTC 

• DOE

• FCC

• EPA

• SBA

Federal considerations

• Develop guidelines for trusted 

IoT network ecosystems 

• Provide financial incentives to 

encourage adoption.

• Promote processes that improve 

critical infrastructure resilience

• Invest in secure infrastructure 

among devices, networks, people

• Mandate secure solutions for 

federal agencies and key sectors

18
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Accelerate Evolution of Trusted Digital Threads Across Value Chains

R05

Accelerate evolution of trusted 

digital threads across value chains 

by incentivizing companies to 

digitalize their workflows and link 

their data IDs to marketplaces

Justification

• Increase visibility of a product's 

lifecycle and reduce risk of cyber 

attacks, counterfeits, recalls.

• Improve efficiency, reduce costs, 

manage vulnerabilities, increase 

differentiation, and promote 

innovation & data monetization. 

• Enable data marketplaces that 

create business opportunities and 

drive new revenue streams

• Speed adoption by linking digital 

threads (DBOM, HBOM, SBOM) to 

protect proprietary IP but enable 

value chains to monetize

Implementation

• Develop educational/training 

programs on digital threads

• Establish guidelines to create a 

digital thread data sharing.

• Incentivize companies to 

digitalize their workflows

• Promote collaboration PPPs for 

digital thread enabled apps

• Fund development of methods 

to ease digital thread evolution

Barriers

• Lack of education on how digital 

threads enable new business 

• Resistance from businesses to 

adopt new digital solutions

• Hesitance to share data due to IP 

issues or competitive advantage.

• Varying requirements for digital 

threads, making it challenging to 

establish common standards

Agencies

• NIST

• DOE

• DHS

• FDA

• EPA

• CISA

• DOE

• FTC

• SBA

Federal considerations

• Promotion and guidelines to 

create trusted digital threads.

• Financial incentives to enable 

creation of digital threads 

• Support processes to improve 

supply chain traceability.

• Promote PPPs that facilitate 

innovation and collaboration to 

create digital threads compliant 

to federal regulations/standards

19
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Incentivize the Creation & Growth of Trusted Data Marketplaces 

R06

Incentivize the creation of trusted 

data marketplaces where data 

producers and consumers share 

information about data enabling 

data exchange and monetization

while protecting proprietary IP

Justification

• Regulate market access and use 

with better supply chain visibility 

• Reduce costs of data sharing for 

producers and consumers

• Streamline supply chain processes 

to locate and license relevant data

• Reduce redundancies and simplify 

logistics in complex supply chains

• Increase data visibility and access 

in value chains to enable growth 

of marketplaces that will fuel the 

future digital economies

Implementation

• Develop guidelines & regulations for 

access and use of shared data 

• Provide tax credits and subsidies to 

encourage participation

• Promote marketplace benefits to 

participants, suppliers, customers

• Drive data security-confidentiality 

metrics and monitor effectiveness

• Encourage use of analytics for better 

visibility, traceability, efficiency

Barriers

• Lack of awareness on the value 

of the marketplace platforms

• Concerns and resistance over 

data security and confidentiality

• Challenge to regulate & monitor 

access, sharing and use of data 

• Reluctance to share proprietary 

data without a license

• Lack of open and participatory 

platforms for data marketplaces

Agencies

• DOC

• SBA

• DOA

• DHS

• EPA

• FDA

• NSF

• GSA

• NIST

• FTC

Federal considerations

• Implement regulations based on 

experience GDPR, CDPP, etc.

• Develop policies to prevent 

monopolies in the marketplace

• Provide education and resources 

to help SMBs join marketplaces

• Balance participation incentives 

with data security and privacy

• Align government efforts to drive 

open innovation platforms

20
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Subsidize Digitalization of Enterprises in the IoT Value Chain

R07

Fund digitalization of key business 

functions of enterprises in the IoT 

value chain for better visibility and 

ability to track products, monitor 

use, fix defects, and offer services

Justification

• Improve management, efficiency 

and visibility in supply chains

• Increase security, reliability, and 

integrity of digital data

• Enable secure ecosystems, SMB 

opportunities, economic growth

• Accelerate creation of digital 

thread and IoT services growth

• Facilitate digital transformation 

over-the-air services & updates

• Enhance supply chain security, 

integrity of data which will the 

future digital economies.

Implementation

• Develop guidelines and criteria 

for eligibility for the subsidies

• Streamline application/approval 

process for business subsidies 

• Ensure that the subsidies are 

accessible to all businesses 

• Provide incentives for SMBs to 

invest in digitalization and tools

• Encourage collaboration and 

community knowledge sharing

Barriers

• SMBs lack resources/expertise to 

implement digital technologies 

• The cost of implementation may 

be a barrier for some businesses

• Resistance to change, or lack of 

technical expertise/resources.

• Concerns over the security and 

confidentiality of digital data may 

discourage some stakeholders

Agencies

• DOC

• DOE

• DHS

• NIST

• CISA

• SBA

Federal considerations

• Ensure that subsidies that align 

with federal priorities and goals 

• Coordinate with other federal 

agencies to avoid redundancy.

• Monitor and evaluate the impact 

of the subsidies on the economy

• Encourage equitable access to 

digital technologies and tools 

• Prioritize digitalization efforts on 

security and confidentiality

21
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Promote Creation and Orchestration of Trusted Value Chains

R08

Promote creation & orchestration 

of trusted value chains made of 

entities, manufacturers, service 

providers, that collaborate and 

drive trust and accountability

Justification

• Maintain transparency, trust and 

accountability across value chain 

• Grow economic value through 

collaboration and accountability 

among enterprises in value chain

• Protect against vulnerabilities, 

intrusions, and adversaries

• Ensure that IoT infrastructure is 

secure, transparent, trustworthy

• Enable shared monetization 

among stakeholders in the value 

chain and scalable economics

Implementation

• Provide incentives for businesses 

to adopt transparent practices.

• Orchestrate networks of entities 

to maintain trust through 

collaboration and accountability.

• Establish guidelines for creating & 

upkeeping trusted value chains.

• Provide incentives for businesses 

to collaborate and adopt best 

practices for transparency 

Barriers

• Competitiveness and lack of 

collaboration and accountability

• Resistance to change for adoption 

of transparent & open ecosystems

• Cost of implementing practices for 

trustworthy value chains.

• Difficulty in orchestrating and 

coordinating diverse stakeholders 

across fragmented supply chains

Agencies

• NIST

• DOC

• DOE

• FTC

• DHS

• FDA

• SBA

• CISA

Federal considerations

• Ensure that incentives align with 

guidelines and standards

• Foster collaboration among 

agencies, industries and value 

chains to accelerate adoption

• Develop & monitor regulations 

and standards to keep up with 

new threats and technologies. 

• Ensure that regulations are not 

burdensome for businesses

22
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Subsidize Orchestrated Public-Private Partnerships Across Value Chains

R09

Subsidize orchestrated PublicPrivate Partnerships working in 

parallel to speed adoption of 

traceability with consistent 

workflow & hand-off methods

Justification

• Speed adoption of digital thread & 

complex supply chain traceability

• Digitalize supply chains rapidly via 

PPPs working piecemeal in parallel 

for slices of the supply chain

• Create resilient and secure supply 

chains can help businesses drive 

economic growth.

• Improve supply chain traceability 

to help businesses reduce risk and 

increase resilience, which can lead 

to business and economic growth.

Implementation

• Subsidize the orchestration of 

connected PPS across value chains.

• Promote consistent digitalization 

methods for "receivables-processdeliverables“ for digital threads

• Fund the development of digital 

infrastructure, training programs,

• Provide support necessary for 

successful PPP implementation.

Barriers

• Resistance from supply chain 

stakeholders to change or share 

data or work with competitors.

• Cost and lack of expertise and 

digitalize the infrastructure.

• Costs related to implementing 

digitalization among enterprises

• Technical challenges related to 

integrating disparate systems 

and data formats.

Agencies

• DOC

• DOA

• EPA

• FDA

• DHS

• FTC

• FCC

• SBA

Federal considerations

• Prioritize PPPs that promote 

transparency, efficiency, security.

• Ensure that partnerships do not 

unfairly disadvantage SMBs 

• Address security & confidentiality 

concerns related to data sharing

• Consider the potential impact on 

domestic and international trade 

policies and subsidies

23
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Establish Data Policies that Stimulate Economic Growth

R10

Establish data policies that drive 

economic growth via frameworks 

that facilitates Data Monetization 

Security, Privacy, Data Sharing, 

Ownership, Control, Licensing etc.

Justification

• Data policies can have a major 

impact on privacy, security, 

innovation, and monetization.

• Lack of data policies can create 

uncertainty and hinder the 

growth of digital economies.

• Monetization of data enables 

business growth and can fuel 

synergistic ecosystems

• Frameworks that facilitate data 

protection, sharing, licensing, 

and analytics can minimize risk 

and maximize economic value

Implementation

• Promote infrastructure for data 

security and privacy, sharing, 

ownership, analytics and control 

• Establish policies related to data 

that ensure compliance with 

regulatory requirements. 

• Evolve policies in consultation 

with industry, academia, and 

government agencies and keep 

up-to-date with changing tech

Barriers

• Lack of knowledge about data 

policies and resistance to change 

• Lack of clarity on how data 

policies on confidentiality and 

security will impact stakeholders

• Lack of data policy can hinder 

growth of digital economies.

• Cost of establishing infrastructure 

for data security, control, etc. 

Agencies

• DOC

• FTC

• NIST

• DOJ

• DHS

Federal considerations

• Consider potential impact of data 

policies and provide guidelines for 

data use and monetization.

• Promote interoperability for data 

sharing across different systems 

• Encourage collaboration and info 

sharing among agencies and 

industry to improve data policies

• Promote collaboration and info 

sharing among agencies & industry

24
DRAFT – Supply Chain Sub-Group - U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16th and 17th 2023 

Facilitate Creation of Data-driven Business Ecosystems

R11

Facilitate the Creation of Datadriven business ecosystems by 

raising awareness about the New 

Gold, trusted data marketplaces, 

monetization strategies, platforms 

that maximize network effects

Justification

• Data-driven ecosystems enable new 

and scalable revenue streams 

• Connected businesses, products 

and services fuel economic growth

• Data analytics provide insights to 

improve services and monetization

• Trusted data marketplaces promote 

data sharing and collaboration

• Platform-based ecosystems enable 

businesses to collaborate, innovate 

and scale with network effects

• Data regulations can ensure that 

businesses and marketplaces drive 

transparency and accountability

Implementation

• Develop educational programs 

for businesses and individuals. 

• Raise awareness via campaigns, 

conferences, and workshops

• Fund incentives for data-driven 

ecosystems and solutions PPPs 

• Foster development of platformbased business ecosystems

• Encourage collaboration and 

innovation via network effects

Barriers

• Lack of awareness about datadriven business ecosystems.

• Difficulty in developing data 

monetization strategies

• Limited resources and expertise 

to develop data analytics.

• Lack of national strategy to 

create business ecosystems

• Balancing benefits of business 

ecosystems with data privacy

Agencies

• DOC

• NIST

• NSF

• DOE

• DOT

• DOA

• FTC

Federal considerations

• Ensure ecosystem participation 

while preventing monopolies

• Develop guidelines for data 

management and sharing

• Encourage private sector to 

invest for economic growth

• Balance data trust with security 

and value of business ecosystems

• Ensure transparency and visibility 

in data marketplaces.

25
S. Department of Commerce Internet of Things Advisory Board (IoTAB) – May 16 and 17 2023 

Evaluate Opportunities, Risks of Using AI in Supply Chains

R12

Evaluate opportunities, risks 

and regulations for using AI to 

accelerate supply chain security 

and resilience, or prevent bad 

actors from tampering 

Justification

• AI-powered traceability can 

vastly improve supply chain 

security and resilience.

• AI can increase transparency 

and prevent counterfeits 

• AI can detect supply chain 

disruptions and reduce risk 

• AI used by bad actors in the 

supply chain can cause major 

disruptions and harm

• AI-powered attacks are more 

sophisticated and harder to 

detect than classic attacks. AI 

can target critical infrastructure

DRAFT – Supply Chain Sub-Group - U.

Implementation

• Promote AI with IoT for end-toend supply chain traceability.

• Encourage use of AI to analyze 

supply chain data to create value.

• Promote predictive analytics to 

anticipate & handle disruptions, 

• Provide funding to research AI 

security and build tools to detect 

& respond to AI-powered attacks.

Barriers

• Lack of data quality makes it hard 

for AI to provide reliable insights.

• Rapid evolution of AI makes it 

hard to keep pace with emerging 

threats and vulnerabilities

• Sharing supply chain data with 

third-party AI impacts privacy, 

security and attack surface.

• Technical challenges on securing 

trust of data used in AI systems

Agencies

• DOC

• NIST

• FTC

• DHS

• FBI

• DOD

• FERC

• CISA

• FDA

Federal considerations

• Evaluate the risks and benefits 

of AI-powered supply chains

• Work with industry stakeholders 

to develop guidelines needed.

• Ensure that guidelines on AIpowered supply chain are in line 

with data privacy & security laws.

• Promote global collaboration on 

AI-powered solution and develop 

best practices using AI systems

th th 26