TechHub: GE CEO on Digital Partners, Using Data You’re Already Collecting & More

GE CEO John Flannery: ‘Partners Are The Key Pillar Of Our Digital Strategy’

Originally published in CRN

Minds + Machines 2017 took place this week in San Francisco, revealing a ton of new digital software solutions to the world.

GE CEO John Flannery, while speaking to a crowd of systems integrators, resellers and ISVs, said that the Boston-based company wants to help customers work through an IT skills gap as they connect their machines, said CRN.

“Partners are the key pillar of our digital strategy going forward,” he said. “We’ll prioritize the market in two areas, with resources to focus heavily in verticals … like oil and gas, transportation, and mining … and we’ll continue to work to address adjacent markets as well, largely through our partners.”

According to a GE survey released on Tuesday, only 13 percent of executives have a mature digital industrial transformation plan in place. The rest of the industrial market customers are facing a critical skills shortage as they struggle to figure out how to tap into IT tools and drive value from their operations.

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GrayMatter CEO Jim Gillespie giving a media interview during Minds + Machines.

That’s where partners come in, said Flannery: “Bridging this gap starts with small steps, that can help you move in the right direction,” he said. “We are ready and willing to be your partner.”

GE is helping its partners help their customers navigate real-time data, predictive analytics, and IoT through an array of resources, including blueprints, real use cases, and specific technologies.

These technologies include an array of new products and solutions the company has recently released, said Flannery – including Predix Studio, a solution that helps companies build and scale their industrial applications and simplify the development process.

James Gillespie, CEO of GrayMatter, a Pittsburgh-based solution provider and GE partner, said that he is seeing that “digital gap” in industrial companies who want a better digital strategy but don’t know where to start.

“That digital gap mirrors what we see when we’re talking to clients and prospects,” he said. “The challenge for customers is their level of knowledge, skills and culture … it’s sort of a perfect storm. More people are prioritizing it as a strategy now as they look ahead.”

Pulling Needles Out of Your Data Haystack

Steps to Use Data You’re Already Collecting

By Jim Gillespie, CEO of GrayMatter

The Impossible is Now Possible. Industry 4.0 is moving fast and I’d like to let you in on a few very valuable developments about the data you’ve been collecting. It can now help you make better decisions. You can talk to your industrial data and it’s talking back to you, letting you know what’s working inside your operation and what’s not.

It’s exciting for me to see GrayMatter and our partners innovating by taking the data you’ve been collecting through sensors on industrial equipment and applying artificial intelligence and machine learning in the cloud so you can find insights on performance. Then you know exactly where to make improvements.

You need a system to sort through the haystack of data and pull needles out to focus your subject matter experts. That’s what we can do now.

It all starts by framing up the action strategy in three parts.

Step One: Set Your Goals

Start at the end and work backwards.

What return on investment do you want to see? You don’t need all the data you think you need. What information will help you solve the problems you want to solve? What’s the path to getting there? Having this road map first is critical, because otherwise a lot of time and money can be wasted.

Step Two: Start Creating Digital Twins

You hear the term digital twin, but what does it really mean?

Simply put, creating a digital twin is the process of merging physical and digital worlds.

The process takes a physical machine and uses technology to get all the information about past states, present states and predictions. That information creates a digital model that’s alive – taking in a stream of data – using that to adjust so the model is personalized to be a precise representation of the asset.

The software version is used for what used to be a physical inspection – requiring people to be right next to the machine. The virtual version can be done from anywhere and at any time, expanding the value of those inspections and allowing them to have more of a real-time impact. It creates a constant inspection that allows the operators to predict failures sooner.

pulling needles out of data haystack

Digital Twin Value

The digital model of a machine, built and run in a virtual environment used to be available only to the biggest companies with the largest budgets. But the Industrial Internet and an explosion in sensor technology have lowered the cost and broadened the access beyond the elite.

People are not only connected to people, they’re connected to every kind of device at home and now work.

Manufacturers stand to win big from this. Factory floors are outfitted with tremendous amounts of sensors to collect data, but because that data has been locked up it hasn’t provided value.

The digital twin allows us to unlock that data and not just for one asset at a time. We can now model machines in groups – for example, a machine builder with thousands of machines installed across hundreds of customers – will now be able to operate best in class using digital twins.

There’s potential to unleash productivity and efficiencies like we’ve never seen before.

Step Three: Get Behavioral Information from Digital Twins

In order to move to more advanced use cases, such as adaptive diagnostics, condition-based maintenance or predictive failure, Industrial IoT systems need to know more than simply the current device state.

They need to know why. Knowing current device state only helps from a monitoring standpoint. While important, it’s really just the beginning of what we can expect out of IIoT systems. If we know why an asset exhibits a certain state, we can determine what conditions lead to that state and take proactive steps to prevent future occurrences. 

This new layer of getting insight through behavioral information allows you to ask for more. You can search your data and get answers back right away. It’s like an instant messenger for operational technology.

Step Four – Get Digital Twins to Interact

Achieving this may mean digital twins built using multiple discrete machine learning algorithms potentially spread across multiple IoT platforms, not simply relying on one. Eventually, we should expect that digital twins will interact with one another in virtual space.

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Leap Ahead

If you’re short on time, staffing or budget – GrayMatter can get you up and running to achieve value quickly. You know you need an IoT strategy in the near future, but may not know how to go about it. Rather than trying to design, source and build it yourself we can put the strategy in place in days or weeks.

You also don’t have to do everything at once, you can start with a limited selection of assets and scale up or down as you learn performance and asset behaviors.

Our strategy is a Salesforce version of a remote monitoring and diagnostics center that you can buy and implement incrementally.

GrayMatter’s Digital Twin Strategy

We use data, predictive capabilities and machine learning to identify your best and worst performers in each asset group. Your operators are automatically alerted to the worst performers, then they use an intuitive web interface, to turn the worst into the best.

Continuous improvement becomes expected, simplified, and routine.

As your team builds new improvements or optimized settings, they can be scaled out, automatically, to every instance of a specific machine or piece of equipment.

You Don’t Need a Data Scientist

The complex algorithms that can leverage your data are pre-built so anyone can start creating the models and analytics to generate insights. One person no longer holds the keys to data, with this unique platform everyone gets a better understanding of your businesses processes, so you’re not focusing on the math to bring the insight, you’re focusing on creating better outcomes for your customers.

Think Big, Start Fast

You need to think big to truly transform your organization, but you also have to start acting on your data today.

We’re anxious to spread the word about how easy this is and to un-complicate it for you. Let me know if you’d like to discuss further. The case study is also available to read here:

Read the Case Study

New Ransomware Attack on Russia, Ukraine

A new strain of ransomware nicknamed “Bad Rabbit” has affected systems at three Russian websites, an airport in Ukraine and a subway system in Kiev, according to BBC.

However, despite bearing similarities to the WannaCry and Petya outbreaks earlier this year, it’s unknown how far this new malware will spread.

“In some of the companies, the work has been completely paralysed – servers and workstations are encrypted,” head of Russian cyber-security firm Group-IB, Ilya Sachkov, told the TASS news agency.

The Russian Central Bank said in a statement that it had recorded a BadRabbit attack on Russian financial institutions, but none were compromised. BadRabbit had targeted several of the top 20 Russian banks but failed.

A majority of the victims of the attack are located in Russia, with attacks also in Ukraine, Turkey and Germany.

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.

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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.

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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: Digital Transformation in Chicago, Transform 2017 Keynote Kristi Woolsey & Ransomware in Industrial Networks

Chicago: The New Silicon Valley

Chicago’s technology community has been booming in the last five years.

A new KPMG report lists Chicago as a hopeful candidate to be the next international hub for innovation due to its talent and infrastructure, according to Inc. Magazine.

The city fosters a developing startup ecosystem, which raised more than $1.7 billion in funding in 2016, and ranks among the best in the country for growth of tech jobs.

Whereas Silicon Valley has shifted away from innovation to a lifestyle, landing tech leaders like the Snapchat CEO on the front page of a major fashion magazine, Chicago fosters a culture of no-nonsense leaders based on the value of hard work and dedication, according to Inc.

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The rooftops at Wrigley Field. Source: CNNMoney

The digital revolution is making more millionaires than ever, pooling together the most brilliant minds on the plant to cultivate an innovative mindset that focuses on creating value.

Join GrayMatter and GE Digital for an interactive session on digital transformations in Chicago on Wednesday, June 21.

Designed for you to learn and share your thoughts, there will be a chance to network with peers and watch the Cubs play the Padres at the exclusive rooftop suites at Wrigley Field.

Nate Arnold, VP of Manufacturing Digital Technology of GE Digital and GrayMatter CEO Jim Gillespie will reveal specific insights on the best paths to success in digital manufacturing and reveal what’s gone wrong in past cases.

Space is limited, so be sure to reserve your spot today.

Reserve My Spot

Inc. Magazine’s Best Workplaces of 2017 AnnouncedInc. Best Workplaces of 2017 GrayMatter

Inc. Magazine recently announced the 2017 best workplaces in their annual list, featuring GrayMatter.

Inc. recognizes the top companies to work for, asking thousands of employees about the places they work. For GrayMatter, transforming operations and empowering people includes our own people.

Transform 2017: MAYA’s Kristi Woolsey as Keynote Speaker

GrayMatter is proud to announce that Transform 2017, the annual GrayMatter conference in Put-in-Bay, Ohio, will feature MAYA Design’s Kristi Woolsey as a prominent keynote speaker this year.

Transform 2017 Kristi Woolsey

Kristi Woolsey, MAYA Design

Woolsey is a dynamic speaker with a long track record of providing insightful presentations that put today’s initiatives into a future context.

Most of her talks revolve around behavioral strategy, the technique of influencing employees and customers towards desired behaviors including greater loyalty, innovation, collaboration, and productivity. These talks and workshops challenge business leaders, HR, IT, and CRE professionals to create lasting branded experiences that increase employee and customer engagement, driving improved business outcomes.

GE Digital’s Sr. Service Director Paul Casto will also present as a keynote speaker. Presenting the power of brand new applications that can be leveraged in the cloud to provide extremely fast, easy to access information about all your assets, he will help cut through the chaos and decipher your digital priorities and first steps.

Transform 2017 is a three day conference in Put-in-Bay, OH, from August 1 – 3.  Professionals in all verticals who are passionate about operational technology and transforming into digital, industrial operations should plan to attend.

View our full agenda and register before June 9 to get the early bird special.

View Agenda

Industrial Networks at Risk of Ransomware Attacks

In recent weeks the news has been filled with reports of the newest malware, WannaCry ransomware, which has infected more than 200,000 systems worldwide.

An alert was published by the Industrial Control Systems Cyber Emergency Response Team, a division of Homeland Security, which advised operations to update security software, create backups, train employees and configure access controls to block unauthorized access to sensitive systems.

Industrial environments are particularly susceptible to these types of attacks for several reasons, including the improper segmentation of IT and OT networks, unpatched Windows machines and the presence of SMB on devices hosting HMIs, engineering workstations, historians and other systems, according to Security Week.

Phil Neray, VP of Industrial Cybersecurity at CyberX, believes that patching the vulnerability is not easy in the case of ICS.

“It’s worth noting that many of the SCADA applications embedded in our electrical grid and manufacturing plants were developed years ago and are tethered to older versions of Windows — so the fix isn’t going to be easy,” Neray said.

 

 

CyBlog: This Week in Cyber Security

This week in the world of cyber, the top predictions of what will be trending in 2017 are flooding the web. Talks of industry and utility hacks, scares of increasingly complex malware attacks and pleads of a more stringent cybersecurity system are more prevalent than ever.

Surprise! Your Operational Technology is connected to the Internet

Discussions of the Ukraine power grid hack have been continuing in the news since before the holidays, with constant updates on the follow-up attack and how they’re connected, as well as what this could mean for the industrial and utility world as thousands were left without power.

Kiev (pictured here) is the capital of Ukraine, a victim in one of multiple malware attacks on their power grid.

Kiev (pictured here) is the capital of Ukraine, a victim in one of multiple malware attacks on their power grid.

Security Week, an internet and enterprise security news and analysis publication, predicts that cyber extortion will further target utility plants due to industrial network air-gaps. This makes it easy for cyber attackers to infiltrate SCADA and ICS systems, and possibly PLCs.

The publication also says that due to the increase in interest of interconnectivity and lack of protection within systems, ICS networks are becoming more complex and more exposed to external threats.

Read more on assessing your SCADA system and the upgrading process in our free white paper. 

Cybersecurity and Malware in the World of OT

With the growing and continuing risk of ransomware infiltrating company systems, cybersecurity is even more of a hot-topic for companies than it was in 2016.

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A possible pop-up screen after malware has distributed into a system.

eWeek, a news publications specializing in the IT industry analysis and technology news,
reported that co-founder and CEO of Keeper Security Darren Guccione predicts small and medium-sized businesses will be more at risk for cyberattacks and data breaches in 2017.

Ransomware isn’t going away. In fact, it’s going to get more effective as hackers become better at embedding the viruses into emails through phishing, a fraudulent practice of sending emails within a company in an effort to steal personal and company information.

As a result, he recommends increasing investment in security defenses to be protected against these increasing threats.

Another prediction from eWEEK is hacks will be getting increasingly more complex. Rather than just single threat vectors, hybrid attacks will be more common. What does this mean? Hackers will be able to infiltrate your system, and then hide their tracks. By using a combination of phishing to deliver malware and then launching a Denial-of-service (DDoS) attack, the system is disrupted and suspends all services connected to the internet. This compromises various systems and is often infected using a Trojan virus — a type of vicious malware disguised within a user system as software.

Lansing

Cybercriminals hacked into and compromised a utility in Lansing, Michigan, at the end of 2016.

Watch our on-demand webinar on securing your operational technology.

The Dangers of Outdated Operational Technology

Speaking of DDoS attacks, Lloyds Banking Group, Britain’s largest mortgage lender, was hit with a viral attack on Jan. 11.

According to Reuters, the bank was “bombarded” with copious amounts of traffic from various systems to overloaded the server. This resulted in temporarily freezing customers out of access to their online accounts.

This comes just months after Britain’s first large cyber bank heist in November when Tesco Banking was hacked. Hackers took funds from 20,000 accounts, and the bank halted all online transactions, and amounted to 2.5 million pounds, or $3 million, in losses.

Shortly after, the European Union (EU) decided it was necessary to boost security and is considering an EU-wide stress test within the industry.

Unfortunately, EU banks “rely on a digital infrastructure that is rigid and outdated,” according to Reuters, and is considering new technologies in an effort to boost security.

Is your SCADA system outdated? Using outdated technology can be extremely harmful towards your internal infrastructure and leaves you at a greater risk for cybercrime.

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