The Industrial Internet: Opportunities, Disruptions and Standards. Stephen Mellor Chief Technical Officer Industrial Internet Consortium

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1 The Industrial Internet: Opportunities, Disruptions and Standards Stephen Mellor Chief Technical Officer Industrial Internet Consortium

2 Industrial vs. Consumer Internet of Things Similar Technology Drivers Small inexpensive sensors & actuators Low cost processing power and data storage Smart devices Connectivity Different Business Drivers Consumer Adequate Quality Modest Security Cost Sensitive Industry QoS Safety Robust Security ROI Sensitive Efficiency New Products New Markets 2

3 The Measurable Outcome will be in the Trillions of Dollars GE: $32.3 trillion opportunity representing 46% share of GDP today. Cisco: Internet of Things (IoT) will increase private sector profits 21% and add $19 trillion to the global economy by 2020 Gartner: IoT product and service suppliers will generate incremental revenue exceeding $300B in McKinsey Global Institute: $33 trillion operating costs could be impacted by IIoT Sources: GE, Cisco, Gartner, McKinsey 3

4 Monetization 1% savings from efficient Industrial Internet solutions could save billions in operational costs $30B fuel cost saving in aviation industry $66B fuel cost saving in gas powered fleets $63B productivity improvement in healthcare $90B reduction in Cap X in oil & gas exploration and development $27B productivity improvement in rail industry Source: Industrial Internet: Pushing the Boundaries (2012, Evans & Annuziata) 4

5 Repercussions With the advances in industry come serious concerns over security Productivity Efficiency Performance Increased Risk Larger Attack Surface Grave Consequences Content restricted to IIC Members Not for External Publication 5

6 Information Technology IT Security specialists focus on: Security first, then Privacy and Reliability. Resilience is interesting for financial transactions. 6

7 Operational Technology Operational Technology experts focus on: Safety, Resilience and Reliability Security is interesting now that control sytems are connected to the Wide Wide World. 7

8 Trustworthiness Trustworthiness is a combination of these five elements: Safety Security Resilience Reliability Privacy (not only security and privacy). Reliability These must be reconciled. 8

9 Permeation of Trust Trust flows down from the owner/operator to all parts of the IIoT system, but trust must be enabled from the bottom up. Content restricted to IIC Members Not for External Publication 9

10 Assurance of the Permeation of Trust Permeation of Trust trust in all of the system elements, how these elements are integrated and how they interact with each other. Content restricted to IIC Members Not for External Publication 10

11 IIoT Security Application Content restricted to IIC Members Not for External Publication 11

12 IIoT Security Building Blocks and Techniques Content restricted to IIC Members Not for External Publication 12

13 The IIC and standards organizations The IIC is not a standards organization. The IIC will: establish a reference architecture evaluate existing standards against it identify requirements, and propose these requirements to standards organizations Requirements are different for the Industrial Internet compared to consumer IoT. 13

14 Security Boundaries System Boundary Network Transport Media access (layer 2) Network (layer 3) security Session/Endpoint (layer 4/5) security Data & Information flows This is addressed by DDS Security 2017 Real-Time Innovations, Inc.

DDS: Data-Centric, Fine-Grained Security Per-Data-Topic Security Control r,w access for each function Ensures proper dataflow operation Complete Protection Discovery authentication Data-centric

15 DDS: Data-Centric, Fine-Grained Security Per-Data-Topic Security Control r,w access for each function Ensures proper dataflow operation Complete Protection Discovery authentication Data-centric access control Cryptography Tagging & logging Non-repudiation Secure multicast 100% standards compliant PMU CBM Control Operator Analysis State Alarms SetPoint Data Topic Security model: PMU: State(w) CBM: State(r); Alarms(w) Control: State(r), SetPoint(w) Operator: *(r), Setpoint(w) Applications Data Topics 2017 Real-Time Innovations, Inc. Permission to distribute granted.

16 Thank you x137 Things are coming together 16

17 INDUSTRIAL INTERNET CONSORTIUM USE OF INFORMATION - TERMS, CONDITIONS & NOTICES Authors and legal notice Copyright 2016 Industrial Internet Consortium (by Object Management Group, Inc.). All rights reserved. This document is provided AS-IS and WITHOUT WARRANTIES. All copying, distribution and use are subject to the limited License, Permission, Disclaimer and other terms stated in the Industrial Internet Consortium Use of Information Terms, Conditions & Notices. If you do not accept these Terms, you are not permitted to use the document. 17

This is the Next Industrial Revolution: The Industrial Internet. 8 February 2017

This is the Next Industrial Revolution: The Industrial Internet 8 February 2017 A fundamental new rule for business is that the Internet changes everything. -Bill Gates, 1999 Or has it? February 13, 2017