Part 3: IAM Across Industries – Business-Specific Challenges and Priorities

In the first two parts of this series, we examined how Identity & Access Management (IAM) has become a crucial driver of digital transformation and why organizations across different industries are investing in more advanced, strategic IAM capabilities. However, while the core principles of IAM generally remain the same, the way IAM is implemented and the priorities it focuses on can differ significantly between industries.

In this third installment, we explore how different sectors approach IAM from a business perspective, highlighting key drivers, unique challenges, and sector-specific use cases. Recognizing these differences is crucial for developing IAM strategies that align with organizational goals and regulatory requirements.

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1. Financial Services: Security, Compliance, and Trust

Business Context

Banks, insurers, and financial service providers operate in one of the most heavily regulated and risk-sensitive industries. Digital customer interactions are increasing rapidly, but cyberattacks, especially those targeting credentials, remain common. Meanwhile, trust is a crucial factor that differentiates a business.

IAM Priorities

• Strong Authentication (e.g., MFA, biometrics) for both workforce and customers
• Role-Based Access Control with separation of duties (SoD)
• Auditability to meet compliance requirements (e.g., SOX, PCI DSS, EBA guidelines)
• Customer IAM (CIAM) to enable secure, frictionless user journeys (e.g., onboarding, KYC)

Key Challenge

Balancing strong security with a smooth digital user experience, especially for mobile-first banking services.

2. Healthcare: Privacy, Delegation, and Life-Critical Access

Business Context

In healthcare, digital identities are more than just data; they are often tied to human lives. Doctors, nurses, patients, and administrative staff require accurate, sometimes urgent access to medical information, while maintaining strict privacy laws is crucial.

IAM Priorities

• Fine-grained access controls to protect patient data (HIPAA, GDPR)
• Context-aware access (e.g., time/location/device restrictions in clinics)
• Delegated and proxy access (e.g., temporary authority for caregivers)
• Audit trails and traceability for medical and legal accountability

Key Challenge

Providing fast and secure access in dynamic environments like emergency rooms and staff rotations while maintaining strict privacy protections.

3. Manufacturing & Industry: Identity Beyond People

Business Context

Industrial enterprises face increased complexity due to digitalization, IoT, and Industry 4.0 initiatives. Unlike traditional IAM environments, machine identities, robots, and industrial control systems (ICS) now need authentication and access management.

IAM Priorities

• Management of non-human identities (devices, sensors, robots)
• Segregation between IT and OT environments
• Federated access for third-party suppliers and maintenance providers
• Centralized visibility over sprawling operational landscapes

Key Challenge

Ensuring secure machine-to-machine communication and remote industrial access without impacting critical infrastructure or production uptime.

4. Retail & E-Commerce: Creating Seamless Customer Experiences at Scale

Business Context

Retailers operate in highly competitive markets where user experience, personalization, and conversion rates are crucial. With millions of customers engaging through digital and physical channels, IAM is a key tool for building brand loyalty and retaining customers.

IAM Priorities

• Scalable CIAM platforms that handle large volumes of users
• Social login, passwordless access, and self-service features
• Unified identities across web, app, and in-store experiences (omnichannel)
• Consent and preference management for marketing compliance (GDPR, CCPA)

Key Challenge

Creating secure and seamless digital experiences for millions of users while collecting and safeguarding consent-based data for marketing and analytics.

5. Public Sector: Identity Federation and Citizen Access

Business Context

Governments and public institutions must deliver secure and inclusive digital services to large, diverse populations, often spanning multiple jurisdictions and agencies. IAM must support federation, trust frameworks, and interoperability while upholding democratic values like transparency and data protection.

IAM Priorities

• Federated identity across government agencies and services
• Citizen self-service portals with accessible authentication (e.g., eID, smartcards)
• Cross-border digital identity (e.g., eIDAS in the EU)
• Identity proofing and assurance levels

Key Challenge

Providing secure, scalable, and user-friendly IAM solutions that support citizens and public servants, often working with legacy systems and tight budgets.

6. Education & Research: Flexible Access for a Changing User Base

Business Context

Universities, research institutions, and academic consortia often have dynamic populations, including students, faculty, and guest researchers, and they must facilitate collaboration across institutions and countries.

IAM Priorities

• Federated identity through initiatives like eduGAIN or Shibboleth
• Temporary and dynamic access rights
• Integration with academic platforms (LMS, research databases)
• Delegated administration and access provisioning

Key Challenge

Supporting flexible and decentralized access control while maintaining academic openness and digital sovereignty.

Common Themes Across Industries

Despite the differences, several cross-industry trends are shaping IAM strategies:

• Shift toward Zero Trust models
• Cloud-first IAM architectures (IDaaS)
• Growing focus on customer identities (CIAM)
• Increasing automation and lifecycle management
• Integration of IAM with compliance, security, and DevOps

Conclusion: No One-Size-Fits-All IAM

The industry-specific context determines what IAM must provide and what failure looks like. A one-size-fits-all approach simply doesn’t work. Each organization must customize its IAM strategy to match its sector’s risks, regulations, user types, and operational realities.

IAM isn’t just about protecting systems; it’s about empowering people, building trusted relationships, and fostering innovation. Whether a bank maintains customer trust, a hospital safeguards lives, or a retailer delivers seamless customer experiences, IAM plays a crucial but often unseen role.

Coming Up Next: Developing a Strategic IAM Roadmap

In Part 4, we’ll explore how organizations can move from IAM theory to implementation by defining target states, creating roadmaps, and aligning IAM initiatives with business strategy.

We’ll answer questions like:

• What makes an IAM strategy “mature”?
• How do you define IAM success?
• What are the key elements of IAM governance?

Stay tuned as we move from sector-specific insights to strategic planning and execution.