Deloitte study outlines manufacturer preparedness for cyber threats

Cyber breaches are on the rise for major companies and according to a study by Deloitte, the U.S. manufacturing sector is woefully unprepared for the cyber threats associated with new connected technology.

In “Industry 4.0 and cyber risk: Security in an age of connected production,” one-third of all manufacturers sampled admitted to not having performed any cyber risk assessments of the industrial connected devices operating on factory floors. The new Deloitte study outlines the strategies that businesses must take to build cybersecurity efforts into their larger business plan and untimely protect their operations and their customers.

Key insights on some of the most significant cyber challenges manufacturers must address include:
Evolution of Cyber Risks from I3.0 to I4.0 – New cyber threats facing Industry 4.0 have built upon common Industry 3.0 attacks with malicious marketing campaigns, disruption of service attacks using botnets and privacy breaches, including the compromise of sensitive customer data and trade secrets, becoming top concerns.
More IoT Devices Equals More Vulnerabilities – Over 20 billion IoT devices are expected to be deployed around the world by 2020, with many of these devices being used in manufacturing facilities and production lines. As these devices are integrated further, manufacturers will need to implement their own safeguards and security practices to protect their operations and those that they depend on from third-parties.
Learnings From Other Industries Need to be Leveraged – As manufacturing has been behind the curve in adopting connected technology compared to other industries, learnings from other sectors like financial services should be incorporated into manufacturing strategies. New technologies like blockchain have the potential to help mitigate current cybersecurity risks by streamlining the flow of goods and information.

The integration of technologies derived from the Industry 4.0 up rise greatly impacts digital manufacturing enterprises and digital supply networks shifting towards physical-to-digital-to-physical connection.

Industry 4.0 incorporates the Internet of Things (IoT) with physical and digital technologies to fulfill the entire process and help digitalize common business functions. These technologies include analytics, additive manufacturing, robotics, high-performance computing, artificial intelligence and cognitive technologies, advanced materials and augmented reality which all play a role in this cycle. This industry revolution encompasses the IoT into the physical-to-digital and digital-to-physical transitions unique to manufacturing and supply network cycles (Figure 2). It is the sequence of digital technology back to a physical material that creates this Industry 4.0 supporting digital manufacturing and digital supply networks.