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Industry 4.0 – What Is It, and Why do You Need to Start Thinking About It?

In recent years, the adoption of Industry 4.0 technologies such as automation, 3D printers, robotics, and IoT is gaining a lot of momentum across manufacturers. These technologies that interface with the production lifecycle enable businesses to improve productivity and competitiveness through cost control and planning.

However, the competitive advantage achieved by the deployment of Industry 4.0 technologies comes with a risk of vulnerability to cyber threats to a company. 

Operations and information security executives must effectively anticipate and address cyber risks, as well as proactively integrate cybersecurity into operations in accordance with senior management business plans. 

Thus, cybersecurity becomes part of mission-critical tasks, as well as business continuity and recovery for operation and information security executives. 

This involves protecting IT assets in a coordinated manner. The key to the success of secure and resilient operations is awareness of intentional or unintentional internal and external vulnerabilities and threats.

With this in mind, we provide a guide that covers the most relevant aspects of Industry 4.0 applied to the context of technology and cybersecurity. Start the text by understanding more about the origin of Industry 4.0.

What Is Industry 4.0?

The term Industry 4.0 is used to mean the beginning of the fourth industrial revolution – the previous three being mechanical production, mass production, and then the digital revolution.

As described in the book The Fourth Industrial Revolution by Professor Klaus Schwab, Industry 4.0 encompasses “new technologies that combine the physical, digital, and biological worlds, impacting all disciplines, economies, and industries. These technologies have great potential to continue connecting billions of people to the web and dramatically improve the efficiency of businesses and organizations.”

In its application and universal understanding of Industry 4.0, this term is more directly related to the world of manufacturing, and we can even call it Manufacturing 4.0. This industry is growing and transforming like never before. 

In its application to manufacturing, Industry 4.0 is considered “the growth of automation and Internet of Things (IoT)-powered data technologies, the cloud, advanced computers, robotics, and people.” The seamless integration of software, equipment, and people increases the speed, reliability, and flow of information between all systems of a manufacturer.

What Are the Main Characteristics of Industry 4.0?

Industry 4.0 is often summarized into six main features, essentially serving as part of the vision of Industry 4.0 and making the guidelines clearer for companies wishing to understand, identify, and implement Industry 4.0 projects.

What sets this latest industrial revolution apart is the fusion of technologies to save time, enable certain decisions, and reduce errors. This allows digital manufacturing to grow rapidly and widely. 

The technologies we are talking about have similar characteristics, as we will see below.

Interoperability

A simple example is that each web browser can work with all web pages because both use open standards to allow access for everyone. They work separately but depend on each other for success. For manufacturers, physical, human, and computer systems can communicate with each other.

Virtualization

Machines that use virtualization are more protected against malware and can be used to check for updates, run software tests, and test different configurations before presenting the final result. You can create a virtual copy of the smart factory for training simulation and testing without affecting the shop floor.

Decentralization

In Industry 4.0, decentralization means that machines do not rely on human interference to work. Physical systems have sensors connected to a network, capable of making automated decisions based on performance data.

Real-time Capacity

Technology has advanced so much that sensors feed data and algorithms instantly. These real-time data and analytics provide immediate results for faster problem responses and even predictive maintenance.

Service Orientation

The real-time capability made possible by big data and the free flow of information to interoperable systems enable companies to better meet customer needs. This allows companies to adapt to customers’ ever-changing needs and expectations as they occur, providing personalized service.

Modularity

It allows any production line activity to be changed immediately. With the connection and disconnection of different modules, companies can produce unique products in sequence without reconfiguring the entire assembly line.

How Did Industry 4.0 Emerge?

Before we delve into the technologies and challenges of Industry 4.0, we must understand how manufacturing and technology evolved, where they began, and how they began. 

There are four distinct periods when rapid technological developments lead to drastic demographic changes and ultimately helped shape our current world.

Industry 1.0

Industry 1.0 is synonymous with Industrial Revolution. The Industrial Revolution is commonly referred to as a turning point in human history. Once industrialization began to occur, humanity changed forever.

The Industrial Revolution began somewhere between the middle of the 18th century and the beginning of the 19th century. It began in Britain, spreading rapidly to Europe, the United States, and then the rest of the world. The innovative technology that emerged during this period included the steam engine, cotton, and locomotive engine.

Until then, most people worked in agriculture. They lived in small communities or farms. However, once the Industrial Revolution began, most of the work began to shift to factory work. Similarly, there was a massive increase in urbanization, as most jobs in the factories were in the cities.

Industry 2.0

In the early 20th century, the world entered its second Industrial Revolution. With the advent of electricity in the 1800s and the rise of steel production, manufacturing and technology accelerated to a level never seen before.

Electricity allowed manufacturers to increase their efficiency and make their manufacturing machines more mobile. Mass production has become commonplace. Industrial tycoon Henry Ford popularized the assembly line to increase overall productivity and lower prices.

Industry 3.0

After the destruction caused by World War II, a third technological revolution slowly began to emerge as nations began to recover. It was at this point in history that much of our modern technology began to take shape.

During the third Industrial Revolution, manufacturers started producing electronics, such as semiconductors, which eventually led to the modern computer, smartphone, and others. Likewise, mass telecommunications began to emerge.

Over the years, manufacturers have focused less on mechanical machines and more on digital technology and automation. Not to mention that advances in telecommunications have enabled rapid and effective communication, which has enabled globalization.

Industry 4.0

In the last decade, we have entered a new era of technology. Known as Industry 4.0, it adds to the transformation of digital technology that we experienced for the first time in Industry 3.0. However, this time, there is a greater focus on interconnectivity between IoT devices, introducing cyber-physical data and real-time data and analysis interpretation.

Industry 4.0 provides a much more interconnected, comprehensive, and holistic procedure for manufacturing. It can seamlessly connect digital and physical systems.

Similarly, advances in telecommunications enable better communication between company departments, third-party suppliers, and key stakeholders.

Industry 4.0 empowers business owners, managers, and team members to make better, more informed decisions and have greater control in their respective departments or functions. These professionals can leverage these insights to improve business processes, increase productivity, and sustain long-term growth.

What Are the Pillar Technologies of Industry 4.0?

Industry 4.0, as part of a broader concept called digital transformation, covers manufacturing from planning to delivery, with solutions for deep analysis, shop floor data sensors, smart warehouses, simulated changes, and product and asset tracking.

For manufacturers, Industry 4.0 technologies help bridge the gap between what were once isolated processes for a more holistic and visible view across the organization, with many actionable insights.

Below are the main digital transformation technologies brought by Industry 4.0.

Cognitive Computing

Cognitive technologies were not possible before the big data era. Cognitive systems need data to analyze – lots and lots of data. For most manufacturers, having enough data is no longer a problem. 

In fact, most manufacturers have access to more data than they can analyze using older methods and probably more data than they actually need. 

Cognitive manufacturing fully utilizes data present in equipment, systems, and processes to gain actionable insights across the value chain through different processes, from design to manufacturing and support activities. 

Built on the foundations of IoT and employing analysis combined with cognitive technology, Industry 4.0 or cognitive manufacturing drives its key productivity improvements in manufacturing environment reliability, quality, and efficiency.

Cloud Computing

With the advent of IoT and Industry 4.0, the reality is that data is being generated at an impressive speed and in large volumes, making manual handling impossible. This creates the need for an infrastructure that can store and manage this data more efficiently.

Cloud computing provides a platform for users to store and process large amounts of data on remote servers. It allows organizations to use computer resources without having to develop an on-premises computing infrastructure.

The ability of cloud computing to provide scalable computing resources and storage space enables companies to capture and apply business intelligence through the use of big data analytics, helping them consolidate and optimize manufacturing and business operations.

Mobile Technologies

Back office and manufacturing operation managers need complete visibility into every aspect of the manufacturing process, from supply chain logistics to enterprise asset management (EAM) and customer order fulfillment. 

Transparency leads to simpler operations and dramatic productivity growth as problems are perceived and solved more quickly. 

Mobile technologies help factory managers achieve this level of visibility by allowing them to easily switch between mobile and desktop tasks. This is an achievable vision today if manufacturing operations leaders carefully observe their workflows and strategically invest in innovative mobile applications.

Cybersecurity

You cannot have multiple technologies involved at every level of your business without some kind of protection to keep cybercriminals and other malicious agents out of your systems. 

Cybersecurity technology is what protects your digital systems from internal and external attack vectors. Modern cybersecurity involves technology such as blockchain or artificial intelligence and can protect new technologies such as industrial IoT devices.

With digitized and intelligent systems, manufacturers without appropriate cybersecurity are exposed to the threat of intellectual property theft, cybercriminal-driven manufacturing equipment to create faulty products, ransomware, identity theft, and more. 

However, manufacturers can mitigate security threats by creating a plan if they experience a breach, as well as enabling cyber protection measures that protect their data and equipment, including their IoT systems.

M2M – Machine to Machine

The machine-to-machine concept represents any technology that allows two devices to exchange information with each other, for example, to communicate and send data. The communication that occurs between the machines or devices is autonomous, and there is no need for human intervention for this data exchange to occur.

M2M connectivity is related to the Internet of Things (IoT). Both are part of the same concept and complement each other. Thanks to IoT, an interconnected machine or device system can be connected wirelessly and automatically exchange and analyze data in the cloud. In short, IoT is enabled by integrating many M2M devices and using cloud web platforms to process all this data.

3D Printing

3D printers are a vital part of Industry 4.0. While 3D printers came to market in the 1980s, commercially viable 3D printing was only possible in the last decade, thanks to the pioneering efforts of companies such as Stratasys and others. 

3D printing technology today is at a stage where companies are beginning to realize significant and tangible new value for themselves and their customers who use it. 

Leading companies and consultants around the world are making significant investments in 3D printing knowledge and capabilities so they can advise and join their customers on the Industry 4.0 wave and revolutionize supply chains, product portfolios, and business models in the process. 

Robotics

Although robotics has been used in manufacturing for decades, Industry 4.0 has given new life to this technology.

With recent advances in technology, a new generation of robotics is emerging, capable of performing difficult and delicate tasks. Powered by cutting-edge software and sensors, they can recognize, analyze, and act on the information they receive from the environment and even collaborate and learn from humans.

One area of robotics that gains significant strength is collaborative robots (“cobots”), designed to work safely around people, freeing workers from repetitive and dangerous tasks.

Big Data

Big Data refers to the large and complex datasets generated by IoT devices. This data comes from a wide variety of enterprise and cloud applications, websites, computers, sensors, cameras, and more, all in different formats and protocols.

In the manufacturing industry, there are many types of data to consider, including data from production equipment equipped with sensors and databases of ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and MES (Manufacturing Execution Systems) systems.

But how can manufacturers convert the collected data into actionable business insights and tangible benefits? With the analysis of this data. When it comes to data, the use of data analytics is essential to convert data into information that can provide actionable insights.

Ultimately, by collecting previously isolated data sets and analyzing them, companies can now find new ways to optimize processes that have the greatest effect on income.

Internet of Things

Simply put, IoT refers to a network of physical devices that are digitally interconnected, facilitating communication and data exchange over the Internet. These smart devices can be anything from smartphones and appliances to cars and even buildings.

Industrial IoT is a subset of the Internet of Things, where multiple sensors, radio frequency identification (RFID) tags, software, and electronics are integrated into industrial machines and systems to collect real-time data about their condition and performance.

IoT has many use cases, with asset management and tracking being one of the main applications of the technology today. For example, IoT can be used to prevent excess or lack in inventories.

What Are the Main Challenges Brought by Industry 4.0?

Although some organizations have consistent and holistic strategies toward Industry 4.0, most do not. The lack of strategy proves to be one of the greatest challenges, as it happens in many business areas.

There is a large gap between companies that have a long-term strategy and the others. The truth is that most organizations do not have an Industry 4.0 strategy and also suffer from the short strategic term. 

Organizations, in general, are focusing too much on the short term for changes in demands, as well as financial and competitive reasons. In any case, under Industry 4.0, it is clear that initiatives will not be sufficient unless they are part of a strategic journey. 

Moreover, we identified other obstacles and challenges brought by Industry 4.0 to companies.

  • Defining a strategy (for Industry 4.0) is the number one challenge.
  • Rethinking the organization and processes to maximize results.
  • Real understanding of the business case.
  • Conducting success tests.
  • Making the market realize that action is needed.
  • Management of changes, so often forgotten.
  • Company culture.
  • Real integration of departments.
  • Keeping talented professionals.

All of these are challenges that we have seen in so many other areas and there are two more we want to add:

  • Excellence in information management, as it is actionable intelligence, connected information, and process excellence in a context of relevance, innovation, and timely availability for any business, employee, and customer objective.
  • Cybersecurity and privacy. The increasing number of attacks on the IoT is a fact as technology and operations converge. In addition, one of the main reasons that hinder IoT initiatives is security concerns, and IoT is, as previously seen, a key component of Industry 4.0.

In addition to these challenges, there are other practical, technological, and ecosystem-related ones:

  • The challenges of IT and OT integration.
  • Data compliance regulations.
  • Managing risk and cost reduction in uncertain times.
  • Dealing with the complexity of the connected supply chain.
  • A better understanding of IT and OT technologies and, more importantly, how they can be leveraged.
  • Competition and the fact that Industry 4.0 champions quickly obtain a competitive benefit.

How Can These Risks be Circumvented?

It is an honest question that many entrepreneurs and managers ask. Indeed, Industry 4.0 may not be ideal for some companies. However, to better understand whether Industry 4.0 technology would be a great opportunity to add to your current business model, consider the following:

  • Do you work in a competitive industry with many dominant competitors in technology?
  • Do you have difficulty recruiting quality candidates to fill important positions in your company?
  • Are you trying to increase profitability and efficiency across your organization?
  • Do you need team members and managers to be regularly informed about up-to-date news regarding the company, production, schedules, and others?
  • Are you looking for more integrated business solutions that can encompass multiple departments, such as finances, accounting, customer support, supply chain, manufacturing, and more?
  • Do you want to improve product quality?
  • Do you need to digitize your current business processes?
  • Do you need to improve customer satisfaction and experience?
  • Do you need technology that can provide fast, accurate insights to help you make better decisions for the future of your business?

If you answered yes to one or more of the above questions, Industry 4.0 can be an incredibly beneficial investment for your business and its processes. 

However, if you are still unsure, read on to learn more about how companies use Industry 4.0 technology, as well as its benefits, use cases, and more.

How to Adapt Your Business to Industry 4.0?

It is important to note that Industry 4.0 is not just about technologies. It also analyzes the impact and role of society and employees.

For example, the collaboration between man and machine such as collaborative robots or cobots, new skill sets required of factory workers amid all these changes, and, inevitably, job losses due to continued automation as mentioned and how to face this great challenge.

Therefore, you need to have a long-term strategy to deal with the challenges as they arise. Below are the main pillars you need to structure to follow with Industry 4.0.

Business

The first step is a clear articulation of the desired future state of the company, which is linked to the strategy and objectives of the business and not to the technology with the most buzz. The selection of use cases for pilots is based on a favorable business case, to be refined as pilots are implemented.

Outlining a clear business case becomes more complicated when it expands beyond the four walls of the plant, but that is even more important. For example, supply chain integration generates savings by considering hidden costs that are often not explicitly accounted for. 

Understanding these issues helps organizations formulate an assertive business case that will convince suppliers to embark on an integration journey.

Technology

Many companies will want to evaluate their current IT and OT systems, updating them to provide the power that digital use and analytics cases rely primarily on to support the Internet of Things. 

A scalable, obsolescence-resistant IT structure is essential. Similarly, upgrades of vendors’ IT/OT systems may be required for horizontal end-to-end data integration.

To update the IT/OT technology structure and implement multiple use cases, companies can leverage external technology providers by creating an ecosystem of partners that can help them execute the digital transformation. 

Partnership models can vary between outsourcing, acquisitions, and strategic alliances, with successful ecosystems integrating a mix of startups and established service and technology providers.

Process & People Organization

Few digital transformations can succeed without focusing on people. Four factors provide crucial support.

  • Governance. A digital transformation without a clear owner may not be feasible. A cross-functional team and governance structures help ensure rapid execution.
  • Commitment of senior management. Transformations are more likely to happen when led by key leaders, with a compelling history of change to help mobilize the organization. To prevent momentum from slowing down, leaders can celebrate victories as well as failures that help the company learn to fail and learn quickly.
  • Acquisition of digital capacity. Skill gaps can be addressed by hiring when needed, as well as training existing employees to fulfill even more advanced digital functions such as analytics translator, data engineer, data scientist, or IoT architect.
  • New ways of working. Implementing agile work methodologies empowers teams with the tools, processes, and best practices to achieve success in a digital world.

Why is Cybersecurity Important for the Evolution of Industry 4.0?

Industry 4.0 also has a strong focus on protection. This not only means data security and communication networks, data protection, but also the security and protection of workers, industrial assets, critical infrastructures, and physical safety. 

As industrial assets and critical infrastructure (from critical energy buildings to power grids and more) connect and attacks increase in traditionally isolated industrial environments, the stakes and dangers of vulnerabilities and attacks are enormous in Industry 4.0, which requires a final solution. 

As attacks increase and the consequences may be high, it is also recommended not only to focus on cybersecurity but to combine it with risk management, business continuity, and other things in what is also known as cyber resilience, and this becomes essential as we continue to transform. 

Due to the various facets that security is necessary for the preservation and evolution of Industry 4.0, we will detail below the main technological risks associated with cybersecurity.

Interoperability of Industry 4.0 Devices, Platforms, and Structures

With the introduction and integration of Industry 4.0 devices, platforms, and structures into existing systems, the question of interoperability arises. In industrial environments, protecting the interconnectivity between multiple devices is often a challenge, especially when considering devices that have been unsupported for a long time. 

Therefore, it is essential to promote secure solutions to ensure the continuous integration of Industry 4.0 devices with legacy systems and with each other. For example, gateways to ensure transparent communication in the case of different network protocols or others.

In addition, the lack of interoperability is related to dedicated and proprietary protocols that are in use by Industry 4.0 devices. In the case of devices and platforms from different suppliers being used, interoperability cannot always be ensured. 

Ensuring interoperability between devices/platforms is not only about the perfect operation but also about security. Therefore, it is essential to address the problem of proprietary protocols that are not always secure and to adopt common frameworks to improve the functionality and security of Industry 4.0 solutions.

Technical Restrictions Preventing Security in Industry 4.0 and Intelligent Manufacturing

The difficulties in ensuring security in Industry 4.0 also result from the lack of technical capabilities of connected industrial devices and systems, especially considering integration with legacy infrastructures. 

Restrictions on embedded systems pose a major challenge, especially when it comes to low-cost ICSs (Industrial Control Systems) and PLCs (Programmable Logic Controller), as they face many problems with a direct impact on their security. 

The following limitations can be considered:

  • Limited processing capabilities and the need to ensure a long operating time while maintaining an acceptable size and competitive price for the device considerably affect the implementation of comprehensive security features in the design phase.
  • Little consideration for fundamental protection mechanisms when designing Industry 4.0 devices negatively influences their security. Patches and software updates are, in most cases, unfeasible solutions when it comes to low-cost devices, as they do not support such functionality.
  • Few more advanced security measures, such as encryption or authentication, for example, decrease the level of protection of devices closest to the industrial process. A fairly common approach of only protecting the network is insufficient.

Finally, considering the gaps related to limited technical resources, it is worth mentioning the fact that dedicated cybersecurity tools for Industry 4.0 systems are generally very few or inefficient. 

Tools for network monitoring, automatic asset discovery and configuration,

and management of changes in the environment increase the level of security of these systems and their availability.

What Should You Ensure for Your Cybersecurity Strategy to Work with Industry 4.0?

All this new technology and data collection have given cybercriminals new attack surfaces. And cyberattacks are not a distant threat. Let’s remember the Colonial Pipeline attack, which suddenly impacted communities in the US. This incident is a painful reminder that cybercriminals are innovative and organized and your defense should be as well. 

There is no simple solution to protect the security of your organization. Modern manufacturers are combining layers of smart, high-tech security with a culture of workplace data security and employee training. 

While each situation is different, here are five things you can do to help better protect your data in an Industry 4.0 world. 

 

Make a Commitment to Cybersecurity

A cyberattack has potential catastrophic effects on worker safety, environmental exposure, and the financial impact of production disruption. If your organization is still using legacy systems, it means it has a security vulnerability. 

It is time to commit to a serious technology upgrade. Redoing the cybersecurity infrastructure allows for a deep defense: the ability to monitor and protect the most important data and then propagate to all minor vulnerabilities. 

This includes the ability to examine security at the system level and then monitor and allocate resources accordingly to make informed decisions in the real world. Keeping current software patches, version updates, and security improvements can be your organization’s best investment for the future.

Build an End-to-End Security Strategy

As manufacturers add new access points and new technologies, they increase cyber risk. 5G technology with built-in security is more secure than most legacy systems, but it is not enough on its own. 

The reality is that you cannot manage the security of each individual device. For example, many manufacturing devices complete firmware and application updates over USB.

Ask yourself: Are we really protecting our devices? Who can log in and access the devices? Are they using secure processes? If you are unsure of the answers, your organization may not be fully protected.

What is needed is a holistic approach to data security. The cloud provides security for the data it manages, but the company still needs to maintain its own end-to-end security controls regardless of whether you operate in a cloud or hybrid environment. 

A good practice is to create private networks within the larger ecosystem to isolate areas, allowing to divide the network flow into different parts. For example, mission-critical applications may have one flow and end-users another, so there is a limited impact in the event of a security breach. Whatever method you choose, your defense systems must be broad and deep.

Consider Your Entire Supply Chain

Manufacturers need to understand not only their own security procedures but also those of their suppliers, partners, and customers. As more activities become interconnected beyond the “four walls,” extended security becomes increasingly important. 

Meanwhile, your vendors and suppliers are evaluating you with the same questions, or they should be. Does this company have strong cybersecurity technology and procedures? Can we trust to do business with them?

Make sure you and your suppliers share a common vision and commitment to cybersecurity.

Plan For The Worse

Organizations must prepare for the worst day, a ransomware attack, DOS, data leak, or another serious attack. What could be the impact of such an attack? Who will decide whether operations should shut down production? If production is shut down, what will be the effects? 

Manufacturers must have a detailed plan before something happens to better prepare for these situations. This includes media training and preparation of who will communicate with the public and customers. Manufacturers should conduct regular training to deal with worst-day cyberattack scenarios. You do not want to figure out what to do the day it happens.

Start At the Top

As with all major initiatives, your workforce will not buy adequate security unless it starts at the top. The CEO and the board should preach security to the entire organization.

More than that, they must boost the necessary investments in resources and capital. Cybersecurity should be a top priority for IT and OT and for all members of the organization that handle information, that is, everyone in a modern company.

As infrastructure changes and evolves, manufacturers will have to continually adapt to the attacker and stay one step ahead. By taking appropriate action today, companies will be able to reap the benefits of Industry 4.0 while keeping risks to a minimum.

Bonus Tip: Ask These Key Questions to Consider in Your Cybersecurity Strategy

 

Are You Investing Enough in Cybersecurity?

While government agencies have begun to invest more in setting cybersecurity standards, there is concern they are not enough focused on the manufacturing industry and frameworks are not always relevant.

There is still a lot of research to be done to identify manufacturers’ specific needs, but investing in a variety of security services, including consulting, training, software, and hardware, can help your business mature faster.

Do You Have a Clear Response Strategy to Mitigate an Attack?

Without an adequate response strategy, there is a risk that it will take longer for the business to recover and this will intensify any damage caused, financial or otherwise.

Manufacturers must have an audit trail for compliance and cyberattack insurance to provide support in the event of a data breach and for mitigation purposes. There also needs to be a clear management plan to minimize the effects. It is believed that cyberattacks will only become more prevalent.

Can You Ignore the Risk?

Attacks can range from causing minor production disruptions to serious damage to machines. As we have seen how Merck allegedly lost about $310 million in a violation, it is obvious a similar attack could harm a smaller company.

PAM As a Pathway to Industry 4.0

An organization that seeks to implement security controls and mitigate the cyber risks associated with Industry 4.0 needs to address issues associated with Privileged Access Management, or PAM.

A PAM solution is one of the main ways to guarantee the protection of a company’s confidential information and that all activities are tracked and audited.

Privileged Access Management, also called Privileged Identity Management, enables organizations to protect their privileged credentials. In addition, PAM ensures the effectiveness of least privilege policies by reducing attack vectors and possible data leaks.

Gartner believes that a PAM solution helps organizations securely provide privileged access to critical assets and meet compliance requirements by managing and monitoring privileged access and accounts. 

Basically, a PAM solution works as a secure credential repository for devices installed in the environment. Based on the management of user privileges, one can allow users to access only the data required for them to perform their activities. Thus, the information security team can configure user access profiles, avoiding improper access to systems and data.

Learn About the senhasegura Solution

In order to avoid data theft and traceability of actions in networks, databases, servers, and devices, senhasegura works to ensure digital sovereignty for institutions in several areas.

The solution is recommended for companies in the following scenarios:

  • Companies with more than 10 users.
  • Companies that received points of attention in auditing.
  • Companies that must comply with cybersecurity rules and regulations.
  • Companies that want to implement the best security practices.
  • Companies that have suffered a security incident.
  • Companies that need to reduce operating costs.

senhasegura allows companies to implement the most strict and complex controls on access to privileged credentials in an automated and centralized manner, protecting the IT infrastructure from data breaches and potential compliance breaches.

It has custom reports and audit trails of all privileged activities and separates privileged users and controls access to the environment through a centralized policy structure.

In addition, senhasegura restricts and monitors privileged users by applying the deepest level of granular control, robust password protection, and multifactor authentication.

It is also ready to meet business and market compliance requirements such as LGPD, GDPR, PCI DSS, SOX, NIST, HIPAA, ISO 27001, and ISA 62443.

Did you like our article and would like to have more details? senhasegura strives to ensure the sovereignty of companies’ actions and privileged information. To do so, we work against data theft and through traceability of administrator actions on networks, servers, databases, and a multitude of devices through a PAM solution.

Request a demo now and discover the benefits of senhasegura for your business.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About Segura®
Segura® strive to ensure the sovereignty of companies over actions and privileged information. To this end, we work against data theft through traceability of administrator actions on networks, servers, databases and a multitude of devices. In addition, we pursue compliance with auditing requirements and the most demanding standards, including PCI DSS, Sarbanes-Oxley, ISO 27001 and HIPAA.

Interview With SCADAfence’s New Field CTO, Paul Smith

OT and ICS Industry veteran Paul Smith, author of “Pentesting Industrial Control Systems” has recently joined the SCADAfence team in the role of Field CTO. We interviewed Paul to get his thoughts on the current state of OT security, challenges that need to be addressed and his predictions for the future.

He was interviewed by content marketing manager, Joan Weiner Levin.

Joan Weiner Levin: Hi Paul. Welcome to SCADAfence! We’re so excited to have you on board. Can you start by sharing a little bit about your background and why you are particularly interested in OT security.

Paul Smith: I grew up in Calgary, Alberta, Canada. They call us ‘little Texas’ because the economy is so heavily influenced by oil and gas. After a number of years working in the oil and gas sector, it felt almost natural for my father and I to start our own consulting company. Leveraging his years of experience and my computer science background. We performed forensic audits inside of the measurement space in oil and gas, which is a very niche vertical where we had to solve many interesting technical problems. I had spent my entire career until then looking through data and how systems are interrelated inside oil and gas trying to find answers and solutions to “Red Herring” problems.

During a project that my father and I were working on, I met Austin Scott who presently works at Dragos, Austin at that time was working on a compressor upgrade project and he invited me out to a “CalSec” Calgary Security meetup. I was hooked, I started investing time in understanding how people formulated careers in this space. I then was invited to attend a “Red vs Blue” event that the Department of Homeland security was hosting out of Idaho National labs. While attending this event I met some of the industry’s finest people, I still stay in touch with a number of individuals. It was from this event that I was eventually offered a job to join Lockheed Martin.

 Shortly after this event I decided to attend a SANs conference in Orlando, it was really the only ICS related security course being offered. Justin Searle was the instructor and this is where I met Michael Assante and Rob Lee. Michael dropped in to give us a pep talk and welcome us to the industry as it was either the first class or second that had ever been presented. Rob Lee had just started Dragos at this time. When working at Lockheed Martin I had numerous discussions about buying two specific new startups in industry one being Dragos and the other was Indegy. Both companies were at a very early stage, Dragos hadn’t even commercially released CyberLens yet. Friends of mine were visiting Israel and got very excited by technology they saw created by a Team 8 foundry company, the product was called ICS Ranger, and that company would go on to come out of stealth mode and brand themselves as Claroty, shortly after this I met with one of the Nozomi founders and became enamored by the possibilities of the product and in the end started working for them for a period of time as well.

JL: What are some of your immediate goals in your new role as field CTO for SCADAfence? Like what do you hope to accomplish first?

Paul Smith: The first thing is making sure the SCADAfence Platform is the best performing product in the market.

We are now industry leaders, and I want to make sure that we always stay ahead of our competition. 

JL: Why did you choose to join SCADAfence? You’re a celebrity in our field. You’re a well published author. You’re also very well known in the industry. Why did you decide to be a part of the leadership in SCADAfence?

Paul Smith: I don’t know if I would say celebrity, maybe been around the block once or twice as for SCADAfence, it is a lean team, it’s got the right funding. I like working with a company when it’s small, hungry, scrappy, and people are wearing multiple hats. It’s on the cusp of blowing up to be big, and that’s something really alluring to me. I like it because now I can come in and put an idea on the table and we bat it around as a team and then we shape it, hone it, and finally we implement and run with it. We are in a constant state of innovation while exceeding customers expectations. 

JL: How do you want to work with SCADAfence’s customers? What is your ideal customer relationship? 

Paul Smith: I want to be a trusted advisor. I want our customers to know that they are first and foremost, we are addressing their concerns and features prior to chasing PR. I want SCADAfence to be the first thought in their heads. When they have a problem in their field or network, they can call us up. Queue up the shameful plug, but in all honesty I want the customers to know that they can call either our managed services team or professional service team and will get the answers they seek. Whether it is writing OT protocol rules, testing packet rules, writing yara rules, adding/removing firewall rules, performing firewall swap outs or whatever it happens to be, I want people to start thinking of us as unbiased experts in this field, the trusted advisors of OT Cyber Security.

JL: What are currently the biggest challenges in the world of OT Cyber security. 

Paul Smith: Number one is staff. It’s always been staff. Companies can’t find enough of the best, well-qualified people that they need to hire. 

 Next, I’d say it’s human error. A lot of the OT security issues we see out there are operator error. Someone who is not properly educated on how to execute changes in an environment can accidentally take down an entire facility. We see this all the time.

For the real cyber threats, if we look beyond human error and its operational impact, I would say it’s nation state threats. The threats and attacks that are happening inside of Ukraine as a result of the Russian attacks right now are pretty insane and indicative of what can happen.

JL: Let’s talk for a minute about the current situation in Ukraine. There have been a number of reported attempted cyber attacks against electrical stations and attempts to damage Ukraine’s fragile critical infrastructure. For those of us observing this from the west, from an OT perspective, what about this situation should alarm or concern us? 

Paul Smith: I’ve had this conversation multiple times with people and they think Russia has all this old military hardware, these bombs and tanks and infantry and it’s falling apart.

But what you don’t see is the cyber warfare going on in the back-end. The next world war isn’t going to be fought with guns and traditional weaponry, it’s going to be fought in cyberspace. You can cause a country to essentially implode just by knocking out their critical infrastructure. 

People have asked me, why isn’t Russia just sending more people in on the ground. And I tell them, it’s because you don’t see what’s happening on the back-end. That’s a major part of the war. If you take down a city like New York, and they can’t get power back up in under two weeks, you don’t even have to shoot a single bullet. People will turn on each other, they’ll figure out ways to survive at all costs. Remember no power means no pumps, no pumps no fresh water, and even worse… no Twitter! I’ll say this, you take down critical infrastructure, you can take down a country.

JL: Is this nightmare scenario preventable?

Paul Smith: To a certain degree, yes. But the problem with technology, the beauty and the problem, is that it’s always evolving. And we’re always innovating. But the cost of innovation is security. To be new and leading is great, but it doesn’t always mean it’s new, leading, and secure. Security is usually an afterthought. 

A lot of engineering companies are trying to change that and put security in the design, but you can’t always do that. You don’t know what you’re securing, because if you’re trying to engineer to be secure, then it is near impossible to innovate at the same time.

JL: You mean security is an afterthought of design?

Paul Smith: Yes. But from a technology perspective, I don’t see this as a problem. Because if you try to put security into your engineering design, it will actually stifle innovation. For example, if an organization tried to create certain things to be completely secure, they would never be able to build them. Because they could have never innovated past the security boundaries that would have to be put into place. If you always put boundaries there, and say you can’t go past these boundaries then you’ll never innovate past the boundaries.

We haven’t invented the next thing that you have to secure yet. If you don’t innovate past that, then there’s no chance of ever seeing what the next wave of security is going to have to be, and that’s why I say it’s a mixed bag. Can we secure things? Absolutely. But as we innovate we have this lag until we find the security gaps. So we invent a new thing, and then, there’s the gaps. Now we have to invent something to secure that, because we’ve never had to secure this before.

A good example is self-driving cars with AI. There is this vision of what those self-driving cars need to be. But if someone puts some obstacle there, like a little orange dot, extended symbols on signage or something no one ever considered, it throws the whole self-driving car off course or can change a stop sign into a 45 m/hr speed sign, this is called adversarial ML attacks. No one could have predicted this because the fundamental technology for ML vision models had never been invented before.

JL: Let’s talk about legacy equipment, the older technology that is still running in manufacturing plants and critical infrastructure facilities. Is there technology still in place that is just too old to be secure, or is the older technology more secure because we’ve had more time to make it secure?

Paul Smith: I talk a lot about this topic, because I say the people who could actually fix the older technology are no longer with us and that is a major risk. So it’s so archaic, that it’s secure by nature. But just don’t look at it, don’t touch it, because if it falls down, we’ll never be able to fix it again. The old legacy stuff is hyper vulnerable. But more from an obsolescence perspective. Now if we talk moderate to old equipment, this is where you will find the highest most vulnerable assets. This technology was first/second generation adoption of ethernet cards, moving away from serial communications. It has become a major issue in industry where companies feel that if it is producing, don’t mess with it. The cost benefit analysis isn’t there for them to justify implementing new technologies yet. This is why we haven’t seen solutions such as GE predicts and Siemens Mindsphere eclipse the market, new technologies just come with price tags that executive teams feel aren’t warranted.

JL: Why aren’t more people choosing an OT cyber security career?
Paul Smith: The reason people don’t go into OT is because really OT security is two, maybe two-and-a-half different roles. Often, companies put up a job posting with a certain salary rate. My reaction is, “well, that’s an interesting salary. The rate is lower than either an automation specialist or an IT specialist.” So they’re trying to pay someone who has to know both job roles less than either singular job.

If you combine the salary for both, then you could have more interesting opportunities for people to grow into. Someone would say to themselves, I’ve had to learn all the OT background, and now I have to learn all the IT cyber elements, like all the networking gear, all the endpoint technology, all the frameworks and security standards, and you only want to pay me same or even less than this other person, I’m just gonna do that other job, because I’ll get paid the exact same.

 The market still hasn’t adjusted salary rates for what it really means to do the job of OT cyber security.

JL: Let’s talk about the relationship between IT and OT. How should those two sides be working together, and what are they currently missing in that relationship?

Paul Smith: We’ve been talking about IT-OT convergence for a long time. And I think the gaps are slowly fading. I always said that it’s easier to take an automation person, and maybe it’s biased because I come from that side, and teach them the security side. As opposed to taking an IT security individual and teaching the automation side, because the automation side is more finicky, it’s not straightforward programming and implementation. Every decision being made inside the controllers can cause millions of dollars of impact.

There has to be more open conversations. For more mature companies, I would say, take one of your automation guys and put him right in your SOC and have him talk directly with all the IT staff there. A lot of these products feeding up data into a SOC use language that the IT analysts don’t fully understand. Whereas if you put an automation guy there, he will be able to translate it. One of the value points for all this technology is we need to change the language to make sure we can communicate both to an automation specialist and an IT security specialist. Because if we put both languages in a security alert, it’s easier for them to communicate and talk to each other.

JL: What is the role of governments in securing the OT? What is the ideal collaboration between the government and the private sector in securing public critical infrastructure?

Paul Smith: When it comes to private companies securing public critical infrastructure, there should be a lot of vetting and a lot of oversight, especially as it relates to major city centers. So if we’re discussing water treatment plants, or electrical facilities, if you’re a third party vendor, you need to be subject to governance. Governments should have a big stick to use for enforcement because one bad incident can impact millions of lives. 

There needs to be a heavier influence of government mandates and sanctions on third parties. And I know for a company like SCADAfence as an Israel-based company, selling into critical infrastructure in North America, that would put a little bit of a hamper on some sales, but it would also force us to comply with standards. Then everyone would feel safe, and there would be full transparency. And then once you have that stamp of approval facilities would be more comfortable working with approved third party vendors. 

JL: What about governments encouraging private companies to do more for their OT security. Should the government be telling private manufacturers that they should do more to protect their OT?

Paul Smith: Yes. I do feel that the government needs to have more say in the manufacturing of  products that impact people on a whole. Pharmaceuticals are a great example. If you have a disruption in drug supply, how many people is that impacting? If a company manufactures insulin pens for diabetics and their production goes down because of an OT security incident, and people miss their shots, you’re killing people because of that cyber incident. So anything that can critically impact people’s lives needs to have a little bit more government oversight. I don’t like a lot of government controls. But I do feel in the case where people’s lives can be impacted, government enforcement for companies to maintain a dedicated level of security practice is necessary.

JL: What is the future of OT security? What do the next three to five years look like?

Paul Smith: Oh, yes, that crystal ball stuff. Where we are now is still pretty immature in terms of OT security. From an industrial OT security perspective there were companies that were ahead of their time, and they owned the market share and then they just stopped innovating, and they fell apart. But I think we’re coming full circle.

If you look at the way our technologies evolved, passive detection became super hot, super silver bullet, we’re all in that market. Venture capital money was just being dumped into it. And now executives are concerned that they don’t get full visibility that way. So we needed to add an active component, but everyone was staying away from active at that time. Now people are more open to active. Ten years ago, that’s how companies were doing this, and they had a massive install base. And they lost market share to passive companies. Now passive companies are supplying an active component/device as part of their product offering, which is where these other guys were 10 years ago. So it comes full circle.

I think you’re gonna see a lot of IT implementations like XDR, and SOAR. Customers are going to start utilizing and coordinating their various security tools. There is a shortage in experienced individuals and the only way to offset that is more intelligence and more automation. Also companies are going to be a lot more open to agents installed out there in their OT environment, telling them what they see so they can be more secure. Agents in OT doesn’t sound very sexy to me, because it’s been done forever ago, but it’s how the industry is maturing and evolving. So that is what I see in the next 3ish years, I predict that in the next 5 years there will be an adoption of AI at the edge providing interesting ML model solutions. I don’t want to give away too much of our secret sauce! 

JL: Finally, because we always need to know. Do you have any pets?

Paul Smith: I do. I have a very sweet German Shepherd. Her name is Bailey, like the Irish cream, we named her because she is the same color as Baileys.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About SCADAfence
SCADAfence helps companies with large-scale operational technology (OT) networks embrace the benefits of industrial IoT by reducing cyber risks and mitigating operational threats. Our non-intrusive platform provides full coverage of large-scale networks, offering best-in-class detection accuracy, asset discovery and user experience. The platform seamlessly integrates OT security within existing security operations, bridging the IT/OT convergence gap. SCADAfence secures OT networks in manufacturing, building management and critical infrastructure industries. We deliver security and visibility for some of world’s most complex OT networks, including Europe’s largest manufacturing facility. With SCADAfence, companies can operate securely, reliably and efficiently as they go through the digital transformation journey.

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