TechHub: New GE CEO Pushes for Digital Future, US Manufacturing Growing Fast & Cyber Security

Our Future is Digital

New General Electric CEO John Flannery put an end to the constant question, “where is the company headed?”

“I have a lot of decisions to make in my new role as CEO, but one decision is easy: GE is all in on digital,” said Flannery in a blog post on LinkedIn.

The digital age is bringing innovation and productivity for industries everywhere, allowing real, tangible outcomes for business.

Through scalability, installed base and industrial expertise, GE plans to be a major player in helping lead this transformation.

With a focus on their core verticals leveraging energy, oil and gas, aviation, healthcare, rail and mining, to help create a strong Predix ecosystem.

GE’s previous CEO Jeff Immelt at the 2016 Minds + Machines conference.

“The company I joined 30 years ago made machines that made the world work better,” said Flannery. “We are still that company, but the world has changed, and the industrial world is increasingly powered by digital applications.

We are part of this transformation, and we have a focused strategy that I believe is best for our customers and for GE.”

Join John Flannery and GrayMatter October 25 in San Francisco at Minds + Machines, an event that connects industrial thought leaders and showcases technology that helps solve the world’s biggest industrial IoT challenges.

Learn More About Minds + Machines

US Manufacturing Expands at Fastest Pace in 13 Years

American manufacturing expanded last month at the fastest pace in 13 years, according to Industry Week.

The strength of advances in the Institute for Supply Management’s gauges partly reflects impacts from hurricanes Harvey and Irma, which forced shutdowns of refineries, chemical plants, retail establishments and car dealerships which were flooded in the storms and had merchandise destroyed.

However, the nation’s producers had already been on firmer footing because of improving global demand and an increase in US capital spending, according to Industry Week.

Manufacturing

Students visiting a PPG paint and coatings plant for Manufacturing Day 2017 in Delaware.

Orders are projected to remain strong in coming months as Manufacturing Day approaches.

Manufacturing Day is a national celebration of modern manufacturing, meant to inspire the next generation of manufacturers. Manufacturing Day occurs on the first Friday in October — this year’s falls on Oct. 6, 2017.

Statistical analysis of key event reporting suggests Manufacturing Day 2016 affected 595,341 participants, including 257,607 students.

Manufacturing Day is about celebrating manufacturing by providing an opportunity to focus collective attention on manufacturing, aiming to:

  • Empower manufacturers
  • Change public perceptions of manufacturing
  • Introduce people to manufacturing careers
  • Draw attention to the roles manufacturers play in their communities
  • Underscore the economic and social significance of manufacturing

Since 2012, MFG Day events has grown over 1,000%, with manufacturers in all 50 United States and Puerto Rico consistently participating.

Source: MFGDay.com

According to survey results by Deloitte from students that attended events in 2016:


89% of students were more aware of manufacturing jobs in their communities.

84% of students were more convinced that manufacturing provides careers that are interesting and rewarding.

64% of students were more motivated to pursue careers in manufacturing.

71% of students were more likely to tell friends, family, parents or colleagues about manufacturing after attending an event.

Every Third Computer Attacked in 2017 From Manufacturing Sector

In the first half of the year the manufacturing industry was the most susceptible to cyberthreats, with the industrial control systems computers of manufacturing companies accounting for almost one third of all attacks, according to Security Magazine.

The majority of the cyber threats were in manufacturing companies that produced various materials, equipments and goods. Other highly affected areas include engineering, education and food & beverage. Energy companies accounted for almost 5% of all attacks.

Special Agent Keith Mularski, Unit Chief of the FBI Cyber Initiative & Resource Fusion Unit, spoke at GrayMatter’s annual conference on industrial cyber security.

The main source of threats was the internet. Attempts to download malware or access malicious phishing web sources were blocked on over 20% of the ICS computers.

The reason this is such a high number is because of:

  • Interfaces between corporate and industrial networks
  • Availability of limited internet access from industrial networks
  • Connection of computers on industrial networks to the internet from operators’ mobile phones

Ransomware attacks on industrial companies tripled by June this year, with various large crime campaigns.

The WannaCry epidemic was one of the most notable, affecting 13.4% of all computers in the industrial infrastructure. ExPetr was a notorious encryption that followed, with 50% of the computers attacked in the manufacturing and oil & gas industries.

“In the first half of the year we’ve seen how weakly protected industrial systems are – pretty much all of the affected industrial computers were infected accidentally and as the result of attacks targeted initially at home users and corporate networks,” said Evgeny Goncharov, head of critical infrastructure defense department at Kaspersky Lab.

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US pharmaceutical giant Merck & Co. was affected by the ExPetya attacks earlier this year.

“In this sense, the WannaCry and ExPetr destructive ransomware attacks proved indicative, leading to the disruption of enterprise production cycles around the world, as well as logistical failures, and forced downtime in the work of medical institutions. The results of such attacks can provoke intruders into further actions. Since we are already late with preventive measures, companies should think about proactive protective measures now to avoid ‘firefighting’ in future.”

Billions of sensors are being rolled out rapidly as the Industrial Internet expands. The devices for operational technology are very different than those found on information technology networks and they need specialized technology to protect them. 

Download the GrayMatter Cyber Security Guide for Operational Technology to get a comprehensive understanding of security in the OT world including top vulnerabilities. The guide walks you through the first steps in knowing what’s on your network and has specific advice about the assessment process from our top cyber security consultants.

Download the Cyber Guide

TechHub: GE Looks to Become IIoT Leader, Industrial Job Growth in US & Industrial Cyber Security

GE Relocates To Boston, Looks to Become an IIOT Leader Amid Transformation

General Electric, the largest US industrial company, is going through a transformation. The company has a new CEO at the helm, relocated headquarters to Boston and most importantly is trying to position itself as a manufacturing leader in the digital era, according to Industry Week.

“If we go back in time, say in 2011 to 2012, when as a business, we were facing challenges, Jeff (Immelt, former CEO) realized that unless we leverage software and analytics, true productivity would not be gained,” said Mark Bernardo, GE’s VP of Professional Services, at the company’s temporary new headquarters in Boston on August 30.

Since then, GE has made several strategic business moves to leverage its core competencies: spun off its financial services unit, GE Capital; acquired French company Alstom’s power and grid business; launched GE Digital to bring various software groups such as engineering, product development, and IT under one umbrella, and opened its cloud-based software platform for the Industrial Internet, Predix, to outside developers.

Despite GE’s goal to cut $2B by the end of 2018, “there is no change in long-term strategy as it relates to digital,” said Jeff Erhardt, GE’s VP of Intelligent Systems.

Erhardt said that machine learning, artificial intelligence along with domain expertise will help boost GE’s digital future. And Predix, its own IOT platform, will play a central role in managing complex data. The platform currently has 100 apps – from MRI machines to turbines to jet engines – created by developers, including many from outside, who mine complex industrial data to make the machines perform more safely and efficiently.

GE’s former CEO Jeff Immelt at Minds + Machines 2016 in San Francisco.

Join GrayMatter in October at Minds + Machines, GE’s premier Industrial Internet event dedicated to software, innovation, and the most powerful digital industrial outcomes.

Minds + Machines will bring together the best and the brightest of the technology world, including GE customers, developers, partners, industrial thought leaders and technology innovators.

Learn More

What’s Driving Job Growth in Industrial America?

Manufacturing and mining jobs are up this year after having fallen in 2016, in which 100,000 jobs were lost, according to the New York Times.

Rising commodity prices has resulted in a jump in hiring within the mining sector. After plunging in late 2014 and throughout 2015, energy prices have somewhat recovered. That has helped stabilize employment in the oil industry. Meanwhile, surging prices for metals like gold and copper are spurring activity in the mining industry.

The US dollar dropping throughout 2017 has also played a major role in manufacturing success. As major exporters who are dependent on overseas customers for a big part of their sales, manufacturers often find themselves at the mercy of the dollar.

When the dollar surged in 2016, American-made equipment was effectively more expensive for foreign buyers. This year’s drop, on the other hand, is a boon for manufacturers as well as for big American companies who draw a big portion of their sales from overseas, like Caterpillar and McDonald’s.

Software-defined Industrial Networks Deliver Cyber Security Breakthroughs

Finding a cost-effective cyber security plan for industrial control systems remains a pain point.

Cyber security is often cited as the leading barrier to growth of the Industrial Internet of Things (IIoT).

ARC Advisory Group published a report suggesting two solutions of promising software-defined networking (SDN) technologies, which can improve cyber security in both new and existing industrial control systems.

One: Network Management Through SDN Protocol OpenFlow

OpenFlow is a single protocol that replaces existing routing and access protocols embedded in Ethernet switches, allowing the entire network of switches to be managed from a central SDN controller.

This has typically been used in large enterprise networks, such as Google, and in large data centers to improve performance.

Ukraine power grid

Kiev, Ukraine, was one of the victims hurt the most in multiple malware attacks on the Ukrainian power grid at the end of 2016 and entering into 2017.

This is also applicable to a much smaller industrial network, or part of an industrial network.

Engineers report that the largest advantage of their SDN network is the ability to lock down the substation network and immediately become aware of any unexpected packets entering. This improves the overall security of networks within electric power substations, which have increasingly become high value targets for cyber warfare internationally.

Two: Host Identity Protocol

Host Identity Protocol (HIP) creates and manages a secure identity-based overlay network that serves the automation components while cloaking them from general visibility.

The fundamental idea is to decouple the IP address from packet forwarding rules, instead authorizing and delivering network services based on provable cryptographic identities.

It also delivers a new Host Identity Namespace that is compatible with existing IP and DNS Namespaces, enabling global IP mobility. It allows organizations to overcome IP addressing issues and move an IP resource within and between physical, virtual or cloud networks without having to change the IP or overlay network policies.

Using HIP in place of IP addresses as identity, it allows a secure identity to be established among sets of devices and the IP address continue to serve its purpose as a locator only.

ARC Recommendations

ARC ends the report with recommendations that manufacturers and utilities should develop use cases leading to broader plans for how SDN could improve cyber security, mobility support and remote access services for existing plants, familiarize themselves with the roadmaps of their network infrastructure suppliers to apply to their own use cases, as well as carefully evaluate the current and evolving technologies and their potential impact on cyber security and performance.

 

TechHub: Ransomware Wreaking Global Havoc, Real-Time Asset Condition & Water Innovations

The Industrial Ransomware Wreaking Global Havoc

The recent global crisis of ransomware attacks on infrastructures and private businesses have left cyber experts and government authorities scrambling to double their efforts.

Computer systems were infected worldwide in June 2017 with a massive cyber attack similar to a recent assault that affected tens of thousands of machines internationally, causing critical infrastructures to take a major hit.

After recovering from a string of attacks that left thousands without power six months ago in December 2016, the citizens of Ukraine were faced with an even worse offense.

A.T.M.s stopped working, workers were forced to manually monitor radiation at the old, toxic Chernobyl nuclear plant due to computer failures and industrial employees worldwide were scrambling to respond to massive hacks.

“At the Chernobyl plant, the computers affected by the attack collected data on radiation levels and were not connected to industrial systems at the site, where, although all reactors have been decommissioned, huge volumes of radioactive waste remain. Operators said radiation monitoring was being done manually,” according to the New York Times.

The entirely new ransomware infected the systems of Ukraine’s power companies, metro services, airports and government ministries such as Kiev’s central post office.

The outbreak was the latest and most sophisticated in a series of attacks, using dozens of hacking tools, according to the NY Times.

The malware also had an impact internationally, causing system shutdowns of:

  • Danish shipping and transport company Moller-Maersk, resulting in an inability to process orders and its 76 terminals around the world became very congested.
  • Russian steel and oil firms Evraz and Rosneft.
  • French construction materials company Saint-Gobain.
  • Pharmaceuticals company Merck.
  • An Australian factory for chocolate giant Cadbury, resulting in halted production.
ransomware

Special Agent Keith Mularski, Unit Chief of the FBI Cyber Initiative & Resource Fusion Unit.

To continue the discussion on cyber espionage and industrial cyber security, join us at Transform 2017, our annual conference in Put-in-Bay, Ohio.

Special Agent Keith Mularski, Unit Chief of the FBI Cyber Initiative & Resource Fusion Unit heads the Cyber Initiative for the FBI and was part of an effort to declassify cyber threats and pass them on to industry.

Keith will walk through case studies of cyber incidents at US Steel, Alcoa and Westinghouse, revealing how the government communicated and worked together with industry to fight cyber crime.

Learn More About Transform 2017

Don’t Get Stuck in a Rut: Learn the True, Real-Time Condition of an Asset

Cars have data and analytics for when parts should be replaced, so why can’t your utility?

It can.

Like owning a car, the idea is similar for asset management. In a water treatment plant, pumps often come with a “best-by” sticker; a generic six-month date is stamped onto it, creating a time-based system for maintenance, regardless of usage.

ransomware

The date becomes the driving factor for servicing rather than following data.

But there is a better way to capture condition of assets consistently, accurately and efficiently.

The solution lies in combining two systems already in place and leveraging the findings to save time and money, drastically increasing uptime.

Download the white paper to learn how to leverage digital data to effectively and accurately forecast maintenance of assets.

Download the White Paper

Water Innovation Pact Signed to Promote Smart Water Networks

The Water Environment Federation (WEF) and Smart Water Networks Forum (SWAN) recently formed a pact to jointly promote the development of best industry practices for sustainable smart water networks.

Smart water networks detect system leaks and manage energy through incorporating technology, according to Water Technology, an online water news publication.

“Supporting innovation is essential to the water sector, and to further development of intelligent water systems,” WEF executive director Eileen O’Neill said.

In the wake of technological advancements in the water sector, the combination of the groups’ focus on smart wastewater network management and integrated intelligent water practices will provide new skill sets and knowledge, allowing for workforce advancement.

ransomware

Co-innovated smart drinking fountain by GrayMatter & DC Water.

The partnership seeks to determine common barriers of implementing intelligent water practices, technology trends and new solutions.

GrayMatter and DC Water have recently had success through a partnership of their own by co-innovating a smart sensor drinking fountain.

A drinking fountain that monitors water quality and flow in real time – giving users more confidence in the water they are drinking and saving money spent on maintenance and testing. The groundbreaking project addresses lead levels – one of the most pressing issues in water.

“This project redefines public water consumption, putting people and clean water first,” Jim Gillespie, GrayMatter CEO.

The new tech fountains have sensors that use real-time data and analytics to monitor both water quality and flow levels, sending that information to the cloud and back, alerting when water quality measurements begin to deteriorate.

The co-innovation project is just the beginning of many ways private sector innovation and independent operations are joining forces to make water operations more efficient, at a lower cost. The fountains are set to be used in public places this fall, including schools.

Learn more about the GrayMatter and DC Water water innovation project at Transform 2017:

  Learn More About Transform 2017

 

TechHub: Smart Drinking Fountains, Malware Threatening U.S. Power Grid, Manufacturing Profiting from IoT & More

Innovative fountains debut at nationwide water technology summit

A live demo of a new innovative smart sensor water fountain made its debut at ACE 2017, the American Water Works Association’s annual conference and exposition, in Philadelphia, PA.

GrayMatter and DC Water have created a drinking fountain that monitors water quality and flow in real time – giving users more confidence in the water they are drinking and saving money spent on maintenance and testing. The groundbreaking co-innovation project addresses lead levels – one of the most pressing issues in water.

“This project redefines public water consumption, putting people and clean water first,” Jim Gillespie, GrayMatter CEO.

The new smart sensor drinking fountain by GrayMatter & DC Water.

The new tech fountains have sensors that use real-time data and analytics to monitor both water quality and flow levels, sending that information to the cloud and back, alerting when water quality measurements begin to deteriorate.

Built with a special emphasis on lead in mind, the fountain will be used initially in schools, hospitals, day-cares and other similar institutions, according to George Hawkins, DC Water CEO and General Manager.

The co-innovation project is just the beginning of many ways private sector innovation and independent operations are joining forces to make water operations more efficient, at a lower cost. The fountains are set to be used in public places this fall, including schools.

Learn more about GrayMatter and DC Water innovations at GrayMatter’s annual conference, Transform 2017 held August 1-3 in Put-in-Bay, Ohio.

Learn More

Cyber experts identify malware that could disrupt U.S. power grid

The world was awaken to the dangerous potential of utility hacks in December when one-fifth of Kiev, the capital of Ukraine, was without power due to a malicious malware that infiltrated their power grid.

Now dubbed CrashOverride, the same malware that left 225,000 without power in Ukraine, is said to have the ability to be modified and corrupt U.S. power grids as well, according to the Chicago Tribune.

“U.S. utilities have been enhancing their cybersecurity, but attacker tools like this one pose a very real risk to reliable operation of power systems,” said Michael Assante, who worked at Idaho National Labs and is former chief security officer of the North American Electric Reliability Corporation, where he oversaw the rollout of industry cybersecurity standards.

cyber

The most concerning — and dangerous — components of CrashOverride are the ability to manipulate the settings on electric power control systems, as well as a “wiper” component that erases the software on the computer system that controls the circuit breakers.

This lets the malware scan for critical components that operate and open circuit breakers, creating a sustained power outage, and then lock the operator out of their system.

Although it has yet to demonstrate the level of complexity needed, according to the Tribune, the malware can theoretically be modified to target other industrial control utilities such as water and gas.

To get a better understanding of your operational technology control network, download our cyber guide, which walks you through the first steps in knowing what’s on your network and has specific advice about the assessment process from our top cyber security consultants.

Download the Guide

GE Digital urges partners to seek opportunities in the Industrial Internet of Things

GE has been one of the largest brands in selling appliances, aviation systems, energy controls, and industrial solutions for years, it’s no secret.

But in 2015, the company announced a new business – GE Digital – marking an effort to bring together its software and IT capabilities, according to CRN.

“Our goal is to co-innovate with the ecosystem,” said Kevin Ichhpurani, executive vice president of global ecosystem and channels and corporate officer at GE Digital.

As GE continues to reinvent itself, according to CRN, strong partnerships are a key element in order to innovate the industrial IoT.

“I think there’s a ton of opportunities around digital transformation overall,” said Jim Gillespie, CEO of GrayMatter. “But inside of that GE has many more opportunities around Brilliant Manufacturing, asset performance managements, field service transformation and cyber security. There’s just a lot of great areas for partners.”

Read more…

Study finds manufacturers are profiting from the IoT

MPI just released its 2017 study results on the Internet of Things with terrific news for the manufacturing industry, according to Industry Week.

The push to jump on the train to digitization or get left behind has been dramatic in recent years, and there’s been a sharp increase in awareness and investment in IoT technology as a result.

Now the numbers are in to prove how switching to IoT enabled products and applications are positively affecting the manufacturing industry for the better:

  • 72% report increased productivity
  • 69% report increased profitability
  • 65% report increased profitability from sales of IoT-enabled products (e.g., embedded intelligence)

GrayMatter co-founders Jim Gillespie & Carson Drake at the 2017 NHL Stanley Cup Playoffs with top industry thought leaders.

Transforming operations is about connecting your equipment in the right way to eventually create a digital twin to mirror your physical operation and improve productivity. 

The biggest problem as to why manufacturers still aren’t jumping onboard is not knowing where to start.

Download our eBook to see how we’ve helped some of the biggest companies in the world overcome these obstacles and learn how to work smarter as a result:

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