Digitalization Risk or opportunity?»
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1 Digitalization Risk or opportunity?» Thomas Menze, Senior Consultant September 21 st, 2018 Dmitry Feshin, ARC Advisory Group representation Russia and CIS
2 Программа презентации ARC старт операций в России Рынок автоматизации Промышленная кибербезопасность сегодня Промышленная кибербезопасность завтра Кибер защита: взвесить риск, вероятность и воздействие VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 2
3 ARC в России! VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 3
4 The Agenda Process Automation Market Industrial Cyber Security Today Industrial Cyber Security Tomorrow Cyber Defense: Consider Risk, Probability and Impact VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 4
5 EMEA Process Automation Expenditures* $28,6 bn MES MES: $2,9 bn 2,9 bn HMI HMI: $0,7 bn Panels: $0,5 bn $1,2 bn Controller DCS: $12,8 bn Advanced Process Control: $0,5 bn $13,3 bn Sensors, Actuators Drives: $3,8 bn Temperature: $0,3 bn Flow: $2,2 bn Control Valves: $4,9 bn $11,2 bn * Baseyear 2017, Source: ARC Advisory VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 5
6 EMEA Process Automation Expenditures 27% 39% 30% 5% VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 6
7 EMEA Process Automation Expenditures EMEA Ratio in 2017: Investments in Cyber Security* = Process Expenditures $853 mn = 2,98% $28,6 bn * Cyber Security Expenditures: Endpoint, + Anomaly + Services VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 7
8 Secure Plants Require a Proper Strategy Technology Investments are Not Enough This is NOT an Effective Defense! This IS! Inventory Assets Endpoints (PC and Non-PC) Networks and Interfaces Evaluate Risks Select Defenses Implement Likelihood & Impact All kinds of attacks Applicability of Technology Effectiveness for Risks of Concern Sequence Readiness Use and Maintain Analyze Information Patches & Updates ARC Research Shows that Implementation and Use/Maintain are the Biggest Challenges These steps are the Focus of ARC s Industrial Cybersecurity Maturity Model VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 8
9 Industrial (ICS) Cybersecurity Challenges External Cyber Attacks External Networks Security Goals & Constraints People ICS Contex t Networks Issue IT Cybersecurity ICS Cybersecurity Endpoints PCs, Servers PCs, Servers, Industrial Devices Networks TCP/IP TCP/IP, Modbus, DNP3, Etc. People Admin People Operators, Engineers, etc. Endpoint Devices Goals Protect Information Safety, Availability, maybe Information Internal Cyber Attacks Constraints 8 to 4, Short disruptions 24x7, No disruptions Industrial Cybersecurity Involves a Unique Set of Endpoint Devices, Network Protocols, People, Goals, and System Management Constraints VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 9
10 Industrial Cybersecurity Tomorrow XYZ Company Maintenance XYZ Company XYZ Company XYZ Company Engineering Purchasing Corporate New Managed-services Enterprise Equipment Suppliers Automation Suppliers Software Providers New IoT Analytics and Applications Private Cloud Business Systems Private Cloud Share Asset Data with 3 rd Parties Secure Connection Monitor in-service Products Secure Network XYZ Company Smart Machine IoT Smart Module Local IoT Compute and Communicate module Physical asset with sensors, actuators Plant Operations Major Asset Optimization via Remote Managed-Services VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 10
11 ARC ICS Cybersecurity Market Categories Cybersecurity Services Cybersecurity Management Solutions Endpoint Protection Network Security Anomaly & Breach Detection ICS Cyber Assets This presentation may be not be reproduced without prior permission from ARC. 11 ARC Advisory Group
12 Industrial Cyber Security Global Market Size & Growth Category 2017 Size MUSD CAGR Endpoint Protection Solutions % Cybersecurity Services 1, % Network Security Solutions % Anomaly & Breach Detection % Security Management Solutions % Total 2, % This presentation may be not be reproduced without prior permission from ARC. 12 ARC Advisory Group
13 IIoT will be a significant ICS Disrupter Three Most Common Things to Expect in the IIoT IIoT Environment Plant System System Device Device Device Plants (complex control systems, with multiple systems) Systems (Simple control systems with embedded smart devices, SCADA remotes, RTUs) Device (Smart Sensors/ Controllers, Drives, etc.) VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 13
14 IIoT is Designed to Enable Innovation Tomorrow s Use Cases Have Yet to Be Defined Corporate IT System Vendor IT System Vendor IT System SCADA Center Device Vendor Private and/or Public Cloud The Wild West IIoT Device Cloud Platform No Clear Use Cases for Strategy Development No Natural Boundaries for Segregating ICS and IT Cybersecurity Responsibilities! VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 14
15 A Future View of Industrial Control Systems Everything Connecting with Everything Suppliers & Service Providers Enterprise Systems Smart Consumer Devices Cloud Services Ubiquitous Connectivity Remote Intelligent Assets Mobile Devices DER Power Plants In-Plant Intelligent Assets VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 15
16 ICS Cybersecurity Has to Embrace These Developments IIoT Demands a Broader View of ICS Cybersecurity Cybersecurity is the key concern for companies that want to (need to) begin their IIoT journey Companies need general guidelines to ensure that they can securely roll out new innovative business strategies While security is important, it s naïve to think that companies will continue to delay deployments The time has come for the ICS Cybersecurity community to acknowledge and address these future ICS/IIoT cybersecurity challenges! VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 16
17 Attack Likelihood Potential Impact Capabilities & Resources Cyber Defense: Consider Risk, Probability and Impact Insider Threats General Hackers Hacktivists Cyber Criminals Terrorists Unfriendly Nations Non- Targeted Attacks by IT-savvy People Targeted Attacks by ICS-savvy People VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 17
18 Cyber Security Management VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 18
19 Let us talk. For more information, contact the author at or visit our web pages at
20 VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC Advisory Group 20
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