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.

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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.

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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:

Download the eBook

TechHub: Industrial cybersecurity, $1 billion fund for advanced manufacturing & mobilizing the plant floor

Market Analysis Report Evaluates Industrial Cyber Security

Cyber security has become a globally recognized issue of national security for industrial companies in light of increased attacks on water and power utilities.

Complex ransomware attacks are becoming more common among industrial companies, resulting in one of the top annual cyber conferences promoting it as a focus.

The RSA 2017 Conference started off with a group of researchers from the Georgia Institute of Technology with a planned water utility hack, demonstrating how much damage a hacker can do by shutting down valves, adjust chlorine levels and falsify readings.

industrial hacks RSA

The RSA 2017 Conference, which featured a live industrial utility hack demonstration.

ARC Advisory Group released a market analysis report that evaluates the current market, as well as a five year market and technology forecast, for industrial cyber security.

Even after a heavy push for protection in recent years, many industrial companies are still struggling to maintain plant security despite having implemented cyber security technologies for protection.

The report cites a lack of resources and lack of cyber security expertise as the key reasons for the insecurity, and that the IT companies the plants use lack a deep understanding of control systems for plant operation.

Industrial companies need to implement the expertise of operational technology professionals that can lock down exposed parts of the network.

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 Guide

Mobilizing the Plant Floor: Industry 4.0

As we get deeper into the fourth industrial revolution, or Industry 4.0, plants are becoming digitized and integrated with the Internet of Things (IoT) for faster, better results.

Junot Systems, a specialist provider of integration solutions for industrial companies, released a case study detailing a real customer success story of mobilizing their plant floor for one of the world’s largest producers of printing inks and pigments.

The plant was facing problems such as lacking an audit trail to identify changes to material batches, loose user procedures for necessary validations, lack of mobility on the plant floor and unnecessary manual aspects of order processing.

By implementing NLINK®, Junot Systems’ quick install product suite and SAP certified interfaces, plant floor technicians were given the ability to process orders away from the HMI stations using mobile tablets with each step validated and logged for full traceability.

For a more in-depth look into the validation process in SAP that NLINK® provides, download the case study:

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$1 Billion Fund to Create Advanced U.S. Manufacturing Jobs

80-percent of U.S. manufacturers are facing a shortage of qualified applicants for skilled production jobs, with a decline in employment within computer and electronic manufacturing since 2007.

Apple CEO Tim Cook. Source: TechCrunch (Photo by Justin Sullivan/Getty Images)

There is an extreme need to close the skills gap within the manufacturing industry, which makes up nine-percent of the U.S. workforce.

Apple CEO Tim Cook announced this week that the company has formed a $1 billion fund to promote advanced manufacturing jobs in the U.S., according to TechCrunch.

The first investments will be announced later this month, according to Cook, leaving the specific use for the funds a mystery for now.

 

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