- Focusing on business-driven goals and outcomes first is how “lighthouse” manufacturers leading the way in the Fourth Industrial Revolution innovation are gaining the greatest results, including driving new revenue and reducing costs.
- Orchestrating analytics, artificial intelligence (AI), the Internet of Things (IoT), quality management, and robotics to support a goal-driven business strategy is a must-have to succeed with Industry 4.0.
- Manufacturers need to redefine their legacy approaches to cybersecurity and adopt cloud-ready Zero Trust Privilege (ZTP) to secure access to critical enterprise resources, including on-premises infrastructure, Infrastructure-as-a-Service (IaaS), containers, Big Data, and other modern enterprise attack surfaces and stop the leading cause of breaches – privileged access abuse.
- Every manufacturer faces the ongoing challenge of recruiting, retaining, and reskilling enough employees to reach their production goals. Manufacturers need to realize that every identity is a new security perimeter, making ZTP essential for reducing risk as they grow.
Last week at the World Economic Forum’s annual meeting in Davos-Kloster, Switzerland, the world’s leading manufacturers, industry leaders, and research firms met and reviewed Industry 4.0’s progress globally.
McKinsey and the World Economic Forum (WEF) have surveyed over 1,000 manufacturing sites globally and found 16 that are the world’s most advanced sites implementing Industry 4.0 technologies. Their combined study, Fourth Industrial Revolution: Beacons of Technology and Innovation in Manufacturing is downloadable here (PDF, 40 pp., no opt-in).
McKinsey’s insight into how building a compelling business case for AI adoption in manufacturing is an excellent read, ‘Lighthouse’ manufacturers lead the way — can the rest of the world keep up? A key revelation from the McKinsey and WEF research presented at Davos is how 16 “lighthouse” advanced manufacturing sites excel at orchestrating new technology to reach and measure progress towards their growth goals.
Industry 4.0’s Missing Growth Catalyst is Security
Manufacturing is the second-most targeted industry for attacks, according to the IBM X-Force Threat Intelligence Index, 2018 and third most likely to have security incidents. It’s also one of the world’s most data-prolific industries, with IoT and related real-time monitoring technologies accelerating the volume of data captured according to an Economist study.
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Industry 4.0 technologies are making every manufacturer’s operations data more valuable to hackers who are hired to conduct industrial espionage, exfiltrating valuable data while also infecting new systems to capture and sell confidential information. A Zero Trust approach to cybersecurity shows potential to thwart the most common type of breach, which is privileged access abuse. Leaders in Zero Trust include Centrify, Palo Alto Networks, and others.
The potential for data breaches are crippling Industry 4.0 pilots and production deployments before they ever have a chance to grow and deliver revenue based on McKinsey’s recent Industry 4.0 and IoT research, It’s the last IT/OT mile that matters in avoiding Industry 4.0’s pilot purgatory.
The following insights from McKinsey and WEF research shared at Davos show the revenue growth and performance gains possible from adopting Industry 4.0. Treating every identity as a new security perimeter and taking a “never trust, always verify, and enforce least privilege” approach is the start of turning security into the growth catalyst Industry 4.0 needs to succeed:
- Adoption of AI as part of Industry 4.0 fabric pays off with early adopters or front-runners achieving a 122% cash flow change. In turn, it becomes vital to protect these economic gains by securing AI applications, R&D, and manufacturing platforms. A critical component in doing so is by redefining legacy approaches to Privileged Access Management. Manufacturers including 3M, Dow, Honda, and Boeing are taking a Zero Trust approach to secure privileged access to their most critical infrastructure, manufacturing operations, cloud platforms, Big Data applications, and other modern attack surfaces. McKinsey found these early adopters or front-runners are achieving an impressive 122% cash flow change, while followers will see a significantly lower impact of only 10% cash flow change.
- Achieving uninterrupted operations provides manufacturers with data they need to improve and move Industry 4.0 pilots to production constantly. Real-time monitoring is revolutionizing manufacturing today. 81% of manufacturers say real-time monitoring is improving their business, according to the recent IQMS Survey, How Manufacturing Technology Can Make the Greatest Contributions to Your Business Growth. The more uninterrupted operations are, the higher the quality of data captured and more accurate the metrics and Key Performance Indicators (KPI) become. Forward-thinking manufacturers are adopting Zero Trust Privilegeapproaches to ensure uninterrupted operations while securing access across expanding modern attack surfaces, improving audits and compliance visibility while reducing risks, complexity, and costs. By securing every perimeter, manufacturers increase the probability of being able to improve their performance, with examples shown below of “lighthouse” manufacturer’s performance levels attained:
- Lighthouse manufacturers are getting the best results in resource productivity and efficiency, yet are seeing the greatest gaps in speed-to-market. 88% of lighthouse manufacturing sites prioritize resource productivity and efficiency for their Industry 4.0 pilots. 63% are in advanced deployments, progressing pilots into production. The greatest gap is in speed-to-market, where 54% of lighthouse sites are making this a high priority, yet just 21% are in advanced deployment. Improving speed-to-market requires lighthouse sites to integrate deeper into their supply chains, and further across their value chains. This creates an immediate security risk which is one of the factors holding back progress and was observed during multiple manufacturing plant visits during 2018 as part of the survey cited earlier in this article. Every identity in lighthouses’ supply chains needs to be considered a new security perimeter if they’re going to close the speed-to-market gap.
Manufacturing contributes 16% of the global Gross Domestic Product (GDP), 64% of global R&D spending, and is a leading indicator of global economic health. One-third of the global economic value of the Internet of Things (IoT) is from production-based applications and use cases. As one of the most data-prolific industries, it’s also the second-most attractive one to hack.
Motivated by financial gain, hackers and state-sponsored hacking organizations exfiltrate valuable data that range from pricing, production results to blueprints and patent plans. As manufacturers’ traditional network perimeters dissolve, they need to discard the old model of “trust but verify” which relied on well-defined boundaries. Zero Trust mandates a “never trust, always verify, enforce least privilege” approach, reducing data breach risks from inside or outside the network.