Will A Digital Renaissance Man Save Cybersecurity?

Derek Klobucher

The cyberattacks we’ve seen to date have been child’s play relative to what’s possible, according to a government expert. We could soon see how bad it can get – and our best defense may be highly capable cyber warriors.

Organizations are scrambling to react in the wake of high-profile attacks, such as a devastating ransomware attack on the UK’s National Health Service in May. Recently Equifax’s interim CEO took to The Wall Street Journal as a sort of mea culpa for a massive data breach of the American consumer credit reporting agency this summer, and the U.S. Securities and Exchange Commission announced a new cyber unit. “Sometime in the next few years, we’re going to have our first category one cyber-incident,” Ian Levy, technical director at the UK’s National Cybersecurity Centre, said at an information security event in September, referring to an attack so severe it would require a national government response.

“Cyber-related threats to trading platforms and other critical market infrastructure” are among the unit’s jurisdiction. And that’s good because plenty of threats exist.

There’s a vulnerable app for that

Stock trading is among your smartphone’s myriad capabilities. But many of the most popular trading apps are susceptible to cyberattack, according to Seattle-based security adviser IOActive.

 “Cybersecurity has not been on the radar of [the people within] the fintech space in charge of developing trading apps,” said Alejandro Hernández, an IOActive cybersecurity consultant. “Security researchers have disregarded these apps as well, probably because of a lack of understanding of money markets.”

These apps enable users to monitor market performance, as well as conduct bank transfers, make purchase orders, and more. But the 21 apps that Hernández evaluated – available via the Apple Store and Google Play – included four that sent passwords in cleartext and others that did not sufficiently encrypt data, among other issues. But the good news is that some people are learning their lesson.

“Innovate to stay ahead of the hackers,” a recent cybersecurity study recommends. “The app developed by a brokerage firm who suffered a data breach many years ago was shown to be the most secure one,” Hernández stated.

Think like a cyber criminal

Cyber-weaknesses are still prevalent where banks, payment systems, and messaging networks meet, according to a Committee on Payments and Market Infrastructures study. And the financial burdens of cyberattacks on businesses around the world seem to be growing, research from Accenture and the Ponemon Institute indicates.

This year’s average cost of cybercrime globally jumped by 22.7% over last year to $11.7 million per organization – or a whopping 62% increase from five years ago, according to the research. Financial services bore the brunt of cyberattacks, averaging annual costs of $18.28 million.

“Innovate to stay ahead of the hackers,” the study recommends. “Invest in the ‘brilliant basics,’ such as security intelligence and advanced access management … [and] spend on new technologies, specifically analytics and artificial intelligence.”

Layer up

Staving off a “category one cyber-incident” will require organizations to focus on risk management – and putting faith in their people, according to the NCC’s Levy. “People create the value at these organizations … [so] build technical systems for normal people.”

That’s important because your organization may not be up against a simple hacker – or an unscrupulous competitor. The complexity, duration, and skill sets necessary for the cyberattacks against the SEC, Equifax, and others hint at the possibility of state sponsorship, said Joshua Douglas, Raytheon’s chief strategy officer of cyber services, on Fox Business.

Thwarting tomorrow’s cyberattacks will require Renaissance men and women, highly capable cyber workers who are well versed in ethics and technology, as well as contextual thinking and clear communications, according to a cybersecurity expert.

“I think most companies are focused on the outside very heavily, which is good,” Douglas said. “But I think that we fail to realize that once an outsider makes it in, that you don’t have that second tier or third tier of support and security to protect the most important assets.”

Renaissance to the rescue

Massive cyberattacks – category one or otherwise – should inspire us to a higher level of innovation, akin to the 20th Century space race, according to national security news website Defense One. Echoing Levy’s call for faith in people, cybersecurity will demand highly capable cyber workers who are well versed in ethics and technology, as well as contextual thinking and clear communications.

“As we expose cyber operators to ever-more vast amounts of sensitive information – and entrust them with some of the most destructive digital tools imaginable – we must continue to ensure that their technical skills are matched by character traits such as integrity and loyalty,” Defense One said. “Only such digital-age Renaissance men and women will be able to rise to the cyber challenges of our time.”

Lackadaisical approaches to security may create long-term problems for your business. See The Future of Cybersecurity: Trust as Competitive Advantage.

Follow me @DKlobucher.

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About Derek Klobucher

Derek Klobucher is a Brand Journalist, Content Marketer and Master Digital Storyteller at SAP. His responsibilities include conceiving, developing and conducting global, company-wide employee brand journalism training; managing content, promotion and strategy for social networks and online media; and mentoring SAP employees, contractors and interns to optimize blogging and social media efforts.

How Governments And Industry Respond To Digital Risk

Andre Smith

The rush to digitalization around the world has come with a great amount of risk. The risk has been shared by private industry and governments alike, as news of data breaches and hacker attacks have made global headlines. Sometimes, simple misconfigurations have led to embarrassing and potentially privacy-compromising incidents. In other instances, specifically directed cyber attacks have exposed the personal data of millions of people.

Anytime data security issues such as these occur, the potential consequences are massive. This is true not only for the business or government at fault, but also for everyone whose data has been stolen. This year has produced some of the largest data security incidents to date, and all signs point to that trend continuing. This has left governments examining the steps necessary to create a safer and more secure digital environment going forward. It is also forcing businesses to review their digital risk-management strategies.

Regulatory responses

The high-profile nature of many of the latest data breaches has led to renewed regulatory scrutiny by governments around the world. In the U.S., there have been Congressional hearings in the wake of the Equifax hack, which exposed the financial information of 145.5 million American consumers. So far, it’s unclear if the hearings will lead to a new round of data-security regulations, but there’s already proposed legislation that would set standards and penalties for businesses regarding customer notification of data security breaches.

The European Union, by contrast, has been far more forward-thinking and decisive. The General Data Protection Regulation (GDPR), set to be implemented by May 2018, has created a framework of legal responsibilities for data security and enumerated rights for individuals regarding personal data collection and storage. The new regulation joins others that already set standards for European (and multinational) financial institutions regarding transparency and digital compliance reporting.

Businesses begin to adapt

In the business world, there is a universal need to update compliance and governance policies and to invest in digital security infrastructure. Most companies have been producing large volumes of digital data for many years, but few have the staff or expertise necessary to manage and secure all of it. Fortunately, the latest Big Data platforms allow companies to aggregate, process, and secure their data in a seamless architecture. Development of these systems is crucial to the future of cybersecurity.

In addition to voluntary policy changes, the potential legal ramifications have spurred changes. In reaction to the pending regulations in the E.U. and the potential for new requirements in the U.S., many global businesses have started to update and bolster their digital risk management efforts. Since the E.U. regulations are (so far) the most stringent and wide-ranging, multinationals and regional firms are using them as the baseline on which to base their policies and practices. It is also intended to head off further legislation that could be costly to affected industries.

The future of digital risk

The very nature of the technological advancement that has created the present security challenges guarantees the risks will continue. To stay ahead of an ever-changing digital landscape, additional actions will surely be needed from actors on all sides. This likely means the promulgation of further regulations and reporting requirements from governments, as well as more comprehensive digital risk management efforts throughout the private sector. There’s still a fair amount of catching up to do, but it seems that the appropriate amount of attention is now being given this pressing global problem.

To learn more about cybersecurity and digital risk, check out Five Ignored Practices That Can Disarm Your Cybersecurity Time Bomb.

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About Andre Smith

An Internet, Marketing and E-Commerce specialist with several years of experience in the industry. He has watched as the world of online business has grown and adapted to new technologies, and he has made it his mission to help keep businesses informed and up to date.

Digitalist Flash Briefing: Who Cares About Data Breaches?

Bonnie D. Graham

Today’s briefing looks at how major consumer data breaches – such as fraudulent credit card charges, compromised data, hijacked e-mail, or social media accounts, and loans or lines of credit opened through identity theft – impact consumers and the breached companies.

  • Amazon Echo or Dot: Enable the “Digitalist” flash briefing skill, and ask Alexa to “play my flash briefings” on every business day.
  • Alexa on a mobile device:
    • Download the Amazon Alexa app: Select Skills, and search “Digitalist”. Then, select Digitalist, and click on the Enable button.
    • Download the Amazon app: Click on the microphone icon and say “Play my flash briefing.”

Find and listen to previous Flash Briefings on Digitalistmag.com.

Read more on today’s topic

 

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About Bonnie D. Graham

Bonnie D. Graham is the creator, producer and host/moderator of 29 Game-Changers Radio series presented by SAP, bringing technology and business strategy thought leadership panel discussions to a global audience via the Business Channel on World Talk Radio. A broadcast journalist with nearly 20 years in media production and hosting, Bonnie has held marketing communications management roles in the business software, financial services, and real estate industries. She calls SAP Radio her “dream job”. Listen to Coffee Break with Game-Changers.

Human Skills for the Digital Future

Dan Wellers and Kai Goerlich

Technology Evolves.
So Must We.


Technology replacing human effort is as old as the first stone axe, and so is the disruption it creates.
Thanks to deep learning and other advances in AI, machine learning is catching up to the human mind faster than expected.
How do we maintain our value in a world in which AI can perform many high-value tasks?


Uniquely Human Abilities

AI is excellent at automating routine knowledge work and generating new insights from existing data — but humans know what they don’t know.

We’re driven to explore, try new and risky things, and make a difference.
 
 
 
We deduce the existence of information we don’t yet know about.
 
 
 
We imagine radical new business models, products, and opportunities.
 
 
 
We have creativity, imagination, humor, ethics, persistence, and critical thinking.


There’s Nothing Soft About “Soft Skills”

To stay ahead of AI in an increasingly automated world, we need to start cultivating our most human abilities on a societal level. There’s nothing soft about these skills, and we can’t afford to leave them to chance.

We must revamp how and what we teach to nurture the critical skills of passion, curiosity, imagination, creativity, critical thinking, and persistence. In the era of AI, no one will be able to thrive without these abilities, and most people will need help acquiring and improving them.

Anything artificial intelligence does has to fit into a human-centered value system that takes our unique abilities into account. While we help AI get more powerful, we need to get better at being human.


Download the executive brief Human Skills for the Digital Future.


Read the full article The Human Factor in an AI Future.


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About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation.

Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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How Manufacturers Can Kick-Start The Internet Of Things In 2018

Tanja Rueckert

Part 1 of the “Manufacturing Value from IoT” series

IoT is one of the most dynamic and exciting markets I am involved with at SAP. The possibilities are endless, and that is perhaps where the challenges start. I’ll be sharing a series of blogs based on research into knowledge and use of IoT in manufacturing.

Most manufacturing leaders think that the IoT is the next big thing, alongside analytics, machine learning, and artificial intelligence. They see these technologies dramatically impacting their businesses and business in general over the next five years. Researchers see big things ahead as well; they forecast that IoT products and investments will total hundreds of billions – or even trillions – of dollars in coming decades.

They’re all wrong.

The IoT is THE Big Thing right now – if you know where to look.

Nearly a third (31%) of production processes and equipment and non-production processes and equipment (30%) already incorporate smart device/embedded intelligence. Similar percentages of manufacturers have a company strategy implemented or in place to apply IoT technologies to their processes (34%) or to embed IoT technologies into products (32%).

opportunities to leverage IoTSource:Catch Up with IoT Leaders,” SAP, 2017.

The best process opportunities to leverage the IoT include document management (e.g. real-time updates of process information); shipping and warehousing (e.g. tracking incoming and outgoing goods); and assembly and packaging (e.g. production monitoring). More could be done, but figuring out where and how to implement the IoT is an obstacle for many leaders. Some 44 percent of companies have trouble identifying IoT opportunities and benefits for either internal processes or IoT-enabled products.

Why so much difficulty in figuring out where to use the IoT in processes?

  • No two industries use the IoT in the same way. An energy company might leverage asset-management data to reduce costs; an e-commerce manufacturer might focus on metrics for customer fulfillment; a fabricator’s use of IoT technologies may be driven by a need to meet exacting product variances.
  • Even in the same industry, individual firms will apply and profit from the IoT in unique ways. In some plants and processes, management is intent on getting the most out of fully depreciated equipment. Unfortunately, older equipment usually lacks state-of-the-art controls and sensors. The IoT may be in place somewhere within those facilities, but it’s unlikely to touch legacy processes until new machinery arrive. 

Where could your company leverage the IoT today? Think strategically, operationally, and financially to prioritize opportunities:

  • Can senior leadership and plant management use real-time process data to improve daily decision-making and operations planning? Do they have the skills and tools (e.g., business analytics) to leverage IoT data?
  • Which troublesome processes in the plant or front office erode profits? With real-time data pushed out by the IoT, which could be improved?
  • Of the processes that could be improved, which include equipment that can – in the near-term – accommodate embedded intelligence, and then communicate with plant and enterprise networks?

Answer those questions, and you’ve got an instant list of how and where to profit from the IoT – today.

Stay tuned for more information on how IoT is developing and to learn what it takes to be a manufacturing IoT innovator. In the meantime, download the report “Catch Up with IoT Leaders.”

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Tanja Rueckert

About Tanja Rueckert

Tanja Rueckert is President of the Internet of Things and Digital Supply Chain Business Unit at SAP.