The Industrial Internet of Things
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- Mariah Moore
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1
2 The Industrial Internet of Things
3 Presentation and Agenda How ICS has Evolved. Changing Landscapes of ICS 2013 End User Cyber Security Survey. Gaps and Recommendations
4 About Your Presenter Previous: Irving Oil, Canada s Largest Refinery (325 MBPD) and LNG Facility Head of Automation and IT 20 Years Current: Oil & Gas Industry Analyst 3 Years specializing in DCS, Manufacturing IT Applications Peter D. Reynolds Senior Industry Consultant ARC Advisory Group
5 About My Organization ARC Advisory Group Unique research company, focused on Industrial Automation Senior people with automation experience and expertise Global Presence: US, Canada, Germany, France, Japan, China, Korea, India, Brazil, Argentina Established in 1986
6 A Sample of Our Clients Owner Operators Suppliers
7 ICS of 1960 s
8 Present Day ICS Who Can Detect the Main Difference between 1960 and Present Day ICS?
9 What is an ICS? Real-time controllers, PLC, DCS, SCADA Field Sensors Electrical Systems Operator HMI Are there other things that are critical to your business?
10 Remember the Purdue Model for CIM? Enterprise Level 4 Management Level 3 Operation Level 2 Control Level 1 Plant Business Operations & ERP Process Information & Analytics, MES, Planning, Scheduling Real-time Control Execution and Safety Continuous Batch Logic Do We need to worry? Field Devices Level 0 Process Traditional ICS Focus.
11 The Evolution of ICS COTS has been in use for well over a decade. Plant Architectures Evolve or Creep Infrastructure is not designed to be Cyber-Secure Islands of Stranded Data Much focus on Appliance Security Measures Procedures and Practice not Keeping up. ICS Staff focused on Operations Customers. Access to Skilled ICS and Plant Experts is Challenging.
12 The View from Above Ethernet Corporate Business Systems Site #1 Site #1 Site #n ---
13 Automation s View from Below Wireless HMI Enterprise IT Systems Infrastructure (Networks ) Safety Fieldbus Process Control OEM / SKID Discrete Control
14 The Clash over standards for Design I design infrastructure with my supplier for Operations Requirements I design infrastructure for enterprise requirements Automation Enterprise Leaders leverage People, standards, best practices Infrastructure is similar but used for differing requirements
15 The Clash over standards and Reporting IEC, ISA, My Supplier standard I report to Operations ITIL, COBIT etc I report to the CFO, CEO Automation Enterprise
16 The Differing Priorities on the Data Here come your security updates? Manufacturing IT embedded. Corporate IT Plant Automation Wait My Operator is making a change CIA AIC Collaboration The Way We Need to Be Priority on systems in not aligned!
17 How Well do we Prepare our Workers for Cyber Security? Automation suppliers: Limited IT Training We teach our students about the basics in University
18 The Winds of Change Enter The Industrial Internet of Things
19 The Industrial Internet of Things What is IoT? Why IoT? Is it real? Are our Cyber Security practices ready?
20 Terminology of IoT Thing is used interchangeably with the terms: Machine Asset Product Device Physical Entity (Piece of) Equipment Personnel The Industrial Internet of Things is based upon enhanced connectivity of this stuff
21 Main Parts of Industrial IoT Intelligent Assets Technology-enhanced with sensors, processors, memory, communications Software-defined behavior Reactive, predictive, and social Generate more data Potentially self-aware and autonomous Communications & Infrastructure Cloud-based Big Data storage Asset Value Chain Analytics and Software Asset Optimization and System Optimization Descriptive, Predictive, and Prescriptive Analytics Intelligent Information when and where people need it Support New Business Models People, Processes, and Systems Social, connected, better decisions, etc.
22 IoT Basic Concepts Virtual Entity; Software-Defined Machine Software Defined Machine Apps Virtual Device (Virtual Machine) Communication Protocols and Device Technologies Device (Machine) with sensors, intelligence, and communications
23 Software Defined Machine Software Virtual Pump Sensors Pump Bearing Temperature Vibration Power Input Pressure Discharge Pressure Discharge Temperature Ambient Temperature Rotation Speed Select performance profile, buffering, communication frequency, security, etc.
24 Connected Asset Ecosystem Improve Performance with new Business Processes XYZ Chemical Engineering XYZ Chemical Corporate Compressor OEM Aux Equipment Automation OEM Local Service Providers Production Facilities XYZ Chemical Operations
25 Applications of Connected Smart Devices Condition Monitoring Data Visualization Personnel Safety Remote Services Service Planning Replenishment Asset Utilization Asset Location Tracking Compliance Software Update
26 Will the Industrial IoT Change Plant Software and Automation? XYZ Chemical XYZ Chemical XYZ Chemical XYZ Chemical Maintenance Engineering Purchasing Corporate Machine Mfr. Service Provider Enterprise New IoT Analytics and Applications Private Public XYZ Chemical Smart Machine IoT Smart Module Local IoT Compute and Communicate module Physical asset with sensors, actuators Plant Operations Emerging Option: Connect Assets Using New Technologies
27 Has the Cost of ICS Applications been holding us back? software Acquisition cost is 10% of IT Spend network management tools hardware facilities security support backups IT labor power/cooling maintenance disaster recovery Operating cost is 90% of IT Spend
28 Consumers of ICS Data The Cloud Your Data Center Cloud Services (Public or Private) Applications Applications Data Data Runtime Runtime Middleware Middleware O/S O/S Virtualization Servers Storage Networking Service Level Agreement 99.95% (5 min outage per week) Virtualization Servers Storage Networking
29 What does a Cloud look like?
30 The True Cloud Computing Characteristics Cloud Computing is about Increasing the Clock Speed for Automation and IT and delivering more value to the business, faster
31 Would You like Your Solution in the Cloud or On Premise? Smart Grid Solutions
32 The Hybrid-Virtualization Cloud Operating Model Deployment X Deployment Y Deployment Z VM VM VM VM VM VM VM VM VM Isolated Private Network Internet facing VPN ABC Chemicals XYZ Chemicals
33 Microsoft Public Cloud Security Standards ISO Internationally recognized Information security standard -133 controls across 11 domains. Annual surveillance audits with continual improvement EU Data Protection HIPAA BAA Law sets a baseline for handling data in the EU Compliance with EU Safe harbor framework. Specifies privacy, security, disaster recovery guidelines for electronic storage of US health records. Business Associate Agreement (BAA) enables 3rd parties to build HIPPA compliant solutions. SSAE 16 / ISAE Accounting standard relied upon as the authoritative guidance for reporting on service organizations Annual audit, controls monitored for 6 months, 10 domains. FISMA US Federal enacted in 2002, based on NIST 800 series, 18 control domains - Applies to US Federal agencies. There is a financial cost to invest in security
34 Why Industrial IoT? Lower costs for manufacturers AND suppliers Improved production Better Asset Performance Lower Operational Costs Better Turnaround Planning Optimize processes Create new applications, services, or business models Supports better product innovation.
35 Industrial Internet of Things - Opportunities Asset Value Chain 3 rd Party Services Connected Apps People Analytics, Big Data Connected Device Management ERP Enterprise Apps, Services New Opportunities: New Business Models New Services Decision Support Visualization CDM Platform: Device configuration Device management Application development Application management Diagnostics, alarms Enterprise integration Security Communications Control Intelligent Assets/Devices/Machines/Products Connected: Machines Products Assets Devices Sensors
36 What Skills does Industrial IoT Demand Cyber Security Network Architecture and Design (Cellular, Wireless and Wired) Big Data/Analytics SOA / XML / Java /.Net / HANA / Hadoop Virtualization Cloud Brokering Application Specific Process/Machine Control Process/Machine Safety Field Networks & Smart Instrumentation /Sensors Video Physical security Soft skills (people) Much of the value from the data will stem from information outside the plant.
37
38 The Current State of Cyber Health Are We Prepared?
39 Questions to Consider. Have me made the right investment in our ICS? How can we drive more value from our investments? Are there new technologies that can help, while leveraging our current assets? What processes need to be in place? What roles internal to our company will change? How will our partners help us operate more safely? How will technology enable this?
40 ARC Cyber Security Research Orlando, Florida, USA 2014 What Did We Do? Who Participated? What Did We Learn? Future ARC Research
41 What Did We Do? Motivation & Objectives, Issue Many good guidelines exist for what companies should do to secure industrial control systems (NIST, ISA/IEC, NERC) But many organizations are still reluctant to take action -they want to know what others are doing before they act (Hotel Fire Syndrome). ARC s User Survey was launched to help these companies overcome this roadblock We also wanted to help gov t and standards groups understand the factors that are constraining action
42 What Did We Do? Survey Methodology We developed our survey with the help of end users and cyber security experts. The final survey had 15 questions and took about 30 minutes to complete We promoted the survey through several different channels in order to maximize end user participation: ARC Websites and newsletters Industry Publications Automation.com ICS Cyber Security Technology Suppliers Industrial Defender, Innominate Security Technologies This generated 107 good responses which we felt was good given the natural reluctance of people to share information.
43 Who Participated? Types of People Sample=107
44 Who Participated? Industries Q14 - What is your organization's primary industrial focus? (check all that apply) Other Water and Wastewater Transportation Semiconductor Refining Pulp and Paper Pharmaceutical and Biotech Oil and Gas Exploration and Production Mining and Metals Machinery Government Food and Beverage Electronics Electric Power Transmission & Distribution Electric Power Generation Consumer Packaged Goods (CPG) Chemical Automotive Heavy Process Focus 0% 5% 10% 15% 20% 25% 30% % of Respondents
45 Who Participated? Geographic Regions North America, but good distribution
46 What Did We Learn? Major Goals Expected?
47 What Did We Learn? Major Concerns Expected?
48 What Did We Learn? Who is Responsible for What? Central vs. Local Centralized Strategy Guidance from the Center Increasing Localized Tactics
49 What Did We Learn? Who is Responsible for What? IT versus ICS More Sharing Less Sharing The Degree of Sharing is Increasing
50 What Did We Learn? How are External Service Providers Utilized? In Future 80% Recognize External Support
51 What Did We Learn? Use of Endpoint & System Technologies Host Intrusion Detection Application Whitelisting Security Event Management Cyber Forensic Analytics
52 What Did We Learn? Use of NGFW Technologies Caution: Don t Know and No Answers = 20-30%
53 What Did We Learn? What More is Needed? >75%: Its all priority
54 What Did We Learn? What is Constraining Further Progress? Lack of Understanding of IT Lack of Resources Inability to Show a Financial Payback
55 Conclusions 1. Both technology and work process gaps exist. 2. Gaps exist in interactions between automation and IT. 3. Systems and Plant Assets are more complex 4. Industry suffers from lack access to experts in each plant. 5. IoT will change the Industrial Automation landscape. 6. Production and safety expectations will only increase. 7. New Low-Cost IoT Architectures will drive Cyber Security Investment. 8. Suppliers / Service Providers of ICS deepen the leverage of International IT standards ITIL, COBIT, ISO Liberation of data will drive Cyber Investment.
56 Kuwait Industrial Automation & Control Systems Cyber Security Conference May 2014 thank you For more information, contact the author at or visit our web pages at
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