Today’s manufacturing industry faces an aging industrial machinery infrastructure that presents huge security challenges poised for continued growth in the coming months and years. Increasingly, manufacturers are beginning to view data security as a top barrier to realizing the value of the Internet of Everything (IoE). In fact, the steady growth of the IoE is creating efficiencies and cost savings across the entire value chain, presenting a $3.9 trillion value opportunity for manufacturers. However, this exponential growth of connections and integration between people, processes, data, and things also presents added security risks and threats that are often complex and multifaceted.
Here are a few of the implications and impacts of security breaches for manufacturers:
- Theft or Loss of proprietary or confidential information and intellectual property
- Downtime in factories and lost productivity – potentially very severe
- Violation of regulatory requirements
- Loss of public confidence and brand
- Economic loss
- Impact on national security
According to Symantec, the manufacturing business sector was the most targeted in 2013, accounting for 24% of all targeted attacks. Of those attacks, industrial networks topped the list of systems most vulnerable to cybersecurity issues. Additionally, the number of attacks on industrial supervisory control and data acquisition (SCADA) systems doubled from 2013 to 2014. Unfortunately for manufacturers, 91% of breaches took just hours or less to perpetrate, yet more than 60% of attacks took months – or even years – to detect. This considerable gap gives cyber attackers plenty of opportunities to access a manufacturer’s trade secrets and sensitive production data.
Tags: #MFG, Cisco, Cisco Connected Factory, Cisco Secure Ops, connected manufacturing, cybersecurity, Internet of Everything, Internet of Things (IoT), manufacturer, Manufacturing, thought leadership
Co-authored with Ibrahim Khalid
According to a recent BMI study, R&D investments in Pharmaceuticals, places Life Sciences as a leader on the list of global ‘outperforming industries’. This may not be a surprise considering the confluence of factors from the global aging populations to the shift to value and outcomes as well as a highly politicized healthcare marketplace. In addition, the consumerization of health care is driving growth in multi-channel marketing and more social media and digital engagements.
This new frontier is truly the ‘digital disruption’ in this industry that is shaking up even the stodgiest companies. We are seeing renewed drive for innovation and investments in conversations with leading biotechnology, pharmaceuticals, and medical device companies. Meanwhile, according to Gartner Group, today, “leading life science companies are increasing focus by establishing organizational entities that focus on digital innovation.” What is the prescription for tackling this new frontier? Rapid digital transformation enabled by Internet of Everything (IoE).
At the recent Generis BioManufacturing Summit, stakeholders across Life Sciences functional areas were seeking a greater technological edge to drive a competitive advantage. Randal Kenworthy presented on the topic of the Internet of Everything (IoE) and its impact on the Life Sciences industry, including use cases across the value chain from R&D to Connected Care. There was resounding agreement as we discussed the business drivers, which cluster around some common themes including:
- How to accelerate research, lowering risks and improving health outcomes through precision medicine
- How to better leverage information from new connected data sources with analytics.
- The best practices around creating smart connected factories by enabling manufacturers to increase compliance, reduce cost and increase operation excellence with IoE
- Steps to create a connected supply chain to increase visibility, traceability and compliance
In discussing case studies on improving patient health through Connected Care, we were struck by how exciting developments in virtual collaboration, data virtualization, medical grade networks and more can enable breakthrough innovations. A great example of that IoE innovation came from Jeremy Frank of Proteus Digital Health. Dr. Frank did a live demo of the digitization of health care by swallowing their sensor enabled pill that began displaying some of his health metrics live (over the Cisco network).
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Tags: biotech, Cisco, Ibrahim Khalid, Internet of Everything, life sciences, Manufacturing, medical devices, pharmaceuticals, thought leadership
Having recently returned from weeks of event keynotes, customer roundtables, briefings and engagements (plus a few culinary adventures) in Greater China, I’ll start there with a few insights and observations. Despite one of the sharpest slow-downs in the Chinese manufacturing sector in recent history that have continued to shrink for the third consecutive month, I sensed an optimism and determination to persevere that haven’t waned, nor has China’s march to global leadership of manufacturing GDP. A recent report from Rhodium Group indicates the number of American workers employed directly by Chinese companies increased >five-fold over the last five years to >80,000 in 2014.
Automation and quality are key tenets driving China’s current growth strategies in manufacturing and the industrial sector. For Cisco this is creating continued demand for our Connected Factory portfolio of architecturally integrated solutions as a leap-frog approach to the legacy automation predominating U.S. and European factories. I certainly found to be the case at two conferences I keynoted—the 5th Annual Manufacturing Supply Chain Summit in Shanghai and the Industry 4.0 / Manufacturing Cloud Forum in Shenzhen—that many massive manufacturers are urgently implementing Internet of Things (IoT) and Cloud / Data Analytics projects as part of their competitive business strategies and differentiation. This key take-away and perspective that China is leading other top manufacturing nations on adoption of industrial IoT is validated by a recent analysis compiled by Infosys Ltd.
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Tags: #CLUS, cisco live, connected factory, Industrial IP Advantage, Internet of Everything, internet of things, Manufacturing
We recently attended the American Manufacturing Summit (AMS) and North American Manufacturing Excellence Summit (NAMES) held in Chicago, IL where Cisco was a main sponsor at both events. AMS provided a great opportunity for industry executives to have in-depth discussions on IoT and its impact on manufacturing while NAMES brought together manufacturing executives looking to implement a better, more efficient way of manufacturing.
Major themes from the American Manufacturing Summit:
Manufacturers stand to reap the greatest benefit from the IoT transition. This is based on the opportunities for manufacturing through the entire value chain – from R&D, to Connected Products, to Connected Plants, to Omni-Channel Sales and Services. Lots of attendees stressed that they want to do a better job of optimizing technology. At the summit, we looked at case studies across the value chain and different industries and discussed best practices, lessons learned and risks.
Specifically, the summit highlighted four primary use cases:
- Connected Products – How are manufactures connecting their products and what is the value proposition?
- Smart Factories – IoT is enabling manufacturers to lighten their manufacturing floor increasing OEE
- End-to-End Supply Chain Synchronization – How manufacturers are digitizing information to increase visibility
- Omnichannel – Using connected products across a variety of platforms to improve sales and customer service in the field.
During the AMS summit, Randal Kenworthy, Practice Director – Manufacturing, Americas Business Transformation, along with the support of colleagues, Dan Boutell, Senior Advisor – Manufacturing and Nandu Nandakumar, Practice Advisor – Manufacturing, Americas Business Transformation, had the opportunity to discuss the IoT impact in manufacturing – especially around acquiring data from sensors and programmable logic controllers (PLCs) for use cases like increased connectivity and predictive maintenance. We also showcased Cisco’s Circuit Emulation over IP Network Modules (CEM) and Unified Wireless Location-Based Services solutions.
Attendees responded positively to the discussion. Interestingly, a lot of responses we received were that they are utilizing some aspects of IoT connected technologies now, but most of the data they are currently gathering is lost and not used. They don’t know what they don’t know, so data analytics will be a first step in the right direction.
Major themes discussed at the North American Manufacturing Excellence Summit:
As the manufacturing landscape continues to evolve, companies and industry leaders are constantly facing pressures to keep up with growing competition. Agility has become crucial as manufacturers manage complex issues like controlling escalating costs and managing a dynamic workforce; all while dealing with pressures to implement a better, more efficient way of manufacturing. Below are a few of the major topics addressed during the summit:
- Continuous Improvement, Lean / Six-Sigma.
- Employee involvement and Leadership.
- Use of technology to drive organizational change.
Once again, our subject matter experts took part in a discussion centered on building smarter manufacturing with IoT. We asked the question, where is manufacturing headed and explained how IoT will fundamentally change how products are invented, manufactured, shipped and sold. With IoT, IP networks and analytics, manufacturers can become more efficient, improve worker safety and offer new business models. Manufacturers that master this new dynamic will have a variety of new opportunities for revenue growth and cost savings.
Attendees/customers shared some key concerns and questions around IoT integration in manufacturing, inquiring about how Cisco can help:
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Tags: Cisco, connected factory, Digital Manufacturing, Internet of Everything, internet of things, IoE, IoT, Manufacturing, thought leadership
The Internet of Everything (IoE)—bringing together previously unconnected people, processes, data and things—opens a world of possibilities in terms of creating new capabilities, richer experiences and unparalleled economic opportunity for organizations, individuals, and nations. Cisco predicts that 50+ billion devices will be connected by 2020. The ramifications are enormous and varied, including how manufacturing plants operate.
The exchange between information technology (IT) and operations technology (OT) is increasing as the industrial plant floor and corporate enterprise become more connected. The convergence of IT and OT is expanding IP Networking and Ethernet connectivity on the industrial plant floor. Understandably, World Bank Studies estimate that 220,000 new engineers are required every year from 2014 to 2022 to connect the unconnected. In addition, there are 300,000 Control Engineers that need to be re-skilled in the industry.
As part of Cisco’s ongoing commitment to equip IT and networking professionals with the knowledge and skills essential to fulfill evolving industry job roles, we have launched the new CCNA Industrial certification. It’s an expansion, due to high demand, of the IT/OT track we began last year with the release of our Industrial Networking Specialist Certification.
Cisco collaborated closely with Rockwell Automation, a company with significant expertise in the industrial automation space, to develop a program to help control-system and traditional network engineers better understand the technologies needed to manage a hyperconnected industrial enterprise. This complements and extends our existing collaboration on products, services, validated architectures, and educational resources to jointly address IT and OT network convergence.
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Tags: CCNA Industrial certification, Internet of Everything (IOE), Manufacturing, Rockwell Automation, thought leadership