demystifying digitalization

Demystifying digitalization

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September 17, 2020

The importance of industrial security services

Did you know that a single cyberattack can cause $18 million in damages for a large manufacturer? As our plants become more digitalized and more employees work from home, industrial security is an issue we simply cannot ignore. What steps are you taking today to ensure your organization stays ahead of rapidly changing cyber threats?

As industrial machines, equipment and systems grow more and more connected, manufacturers are more vulnerable than ever to cyberattacks. The same technologies and platforms that allow companies to drive unparalleled efficiency and quality also increase the risk of crippling cyber-attacks.

 

Malware, traditional cyber-attacks, phishing, and malicious insiders are all disturbingly common threats to manufacturers. Regardless of the variety, cyber-attacks are also enormously expensive. A recent study from Frost & Sullivan reported that on average, a large manufacturer loses $10.7 million in direct costs and $8.1 million in indirect costs from a single attack.

 

Cybersecurity has already been growing more important, but it is especially crucial with record numbers of employees working remotely. Combined with the steady advance of digitalization in industrial facilities, it is clear that manufacturers need a comprehensive, state-of-the-art solution to protect against cyber threats. Siemens Industrial Security Services answers this challenge, paving the way for a safe, seamless and secure digitalization journey.

 

A three step process to securing your industrial network

Protecting complex industrial OT systems from the evolving, myriad threats of cyber-attacks is not a simple process. There’s no one-size-fits-all solution - every network will have unique vulnerabilities and characteristics that must be accounted for. Manufacturers must take great care to ensure that they are carefully reviewing their network and OT systems from top to bottom and rigorously safeguarding them against potential threats.

 

Siemens Industrial Security Services follows our end-to-end approach with a three-step process for ensuring your OT system is protected. The first step is a security assessment. For most manufacturers, cybersecurity is simply not their area of expertise - and compromise is not an option when it comes to protecting your network.

 

Our security service experts comb through your network for specific vulnerabilities and security risks with assessments aligned with IEC 62443 and ISO 27001 international standards. We also ensure the recommendations meet your policies, plant-specific network, and manufacturing processes. Altogether, this stage provides you with a clearly defined roadmap for safeguarding your network against cybersecurity threats.

 

Building a state-of-the-art security program

Once we have a comprehensive understanding of your network and any security gaps, we are able to get to work building a state-of-the-art security solution. We implement proven, cutting-edge security solutions that are adapted to fit seamlessly into an automation environment.

 

Our experts use tools from well-known and respected organizations in OT security and make sure they are properly implemented to protect your network against threats without interfering with daily processes. From cybersecurity training to automation firewalls and routine data hygiene, our team ensures your network has rock-solid protection against threats of all varieties.

 

Malware never sleeps - and neither should your cybersecurity

No organization on Earth is immune to cyber-attacks. One of the biggest challenges in cybersecurity is staying abreast of rapidly evolving cyber threats. Even the most advanced security systems require continual, routine updates to ensure protection against the latest malware and other threats.

 

Furthermore, the rapid technological advances and digitalization occurring in the manufacturing sector can easily create new vulnerabilities in otherwise secure networks. To keep your network safe, it is crucial to regularly reassess and update your cybersecurity platform - as well as monitor for new threats.

 

In the optimization phase, Siemens works with your organization to continuously adapt your security platform to stay ahead of new threats, technologies and regulations. Siemens offers end-to-end monitoring for proactive protection, vulnerability and patch management, and remote incident handling to quickly address any issues. Lastly, Siemens is able to monitor legacy equipment across different vendors, making it easy and flexible to keep your network secure.

 

One of the most impressive tools in our optimization portfolio is industrial anomaly detection. In short, this tool passively monitors industrial automation equipment for anomalies. By using this tool in combination with AI and machine learning, it can rapidly identify and flag suspicious behavior for further investigation. As the tool does not interact whatsoever with the automation, there is no risk of harming equipment or otherwise interfering with production.

 

Siemens - the trusted partner for industrial security solutions

Manufacturers are spoiled for choice when it comes to industrial security partners. But there’s a reason why leading manufacturers have chosen Siemens for a process this important. Siemens brings a truly unique blend of proven expertise in not only industrial security, but also first-hand experience with digitalization and manufacturing at our own innovative facilities.

 

As a leader in next-generation automation technologies, there is no partner better suited to bring your facility to industry 4.0 while also protecting it against tomorrow’s cyber threats. In an area where compromise is not an option, it’s hard to imagine settling for anything less.

One of the most common missteps with implementing innovative new technologies is losing sight of the desired business results. It's not enough to have the most advanced AI platform in manufacturing - you have to apply it in a manner that helps you improve your unique products while driving true efficiency.

For all the buzz around data analytics and artificial intelligence (AI), manufacturers have hardly scratched the surface with these technologies. Thus far, analytics and AI have seen relatively limited application in manufacturing. While their utility is indisputable, few companies have considered how they may holistically integrate these technologies into their process to unlock greater value.

 

A couple of great examples are the areas of quality and predictive maintenance. AI and analytics allow us to achieve tremendous efficiency in these spaces, delivering better products for our customers while dramatically streamlining the manufacturing process.

 

How AI and Analytics enable predictive maintenance

For most manufacturers, downtime is the single greatest source of lost production. While all downtime is expensive, unplanned downtime is especially damaging and can easily lead to hundreds of thousands of dollars lost per hour. The challenge is accurately predicting when each machine will need maintenance across large fleets.

 

AI provides a highly effective solution to this challenge. Machine learning algorithms can analyze large, complex data sets and identify patterns or trends that otherwise could not be recognized. As a result, AI can help manufacturers predict machine failure and breakdowns well in advance and prevent costly downtime.

 

Leveraging video and data analytics to improve quality

Defect detection has always been one of the biggest challenges in manufacturing. The reality is that the human eye will only ever spot a portion of defects passing through the facility. While it remains to be seen whether AI and analytics could achieve a defect-free facility, there is no doubt that these technologies can dramatically improve detection.

 

Study after study has shown that AI can identify more than 99% of defects before they leave the plant floor. As an example, a food production facility may use video analytics to inspect produce, and sorting unwanted materials. Alternatively, video could be utilized to measure splashes in the welding process across a fleet of machines and mark products that may require further inspection. In brief, AI offers the ability to rapidly identify defects or unwanted materials and sort accordingly with an astonishing degree of accuracy.

 

Beyond defect detection, existing process data can be used to create machine learning algorithms to predict the quality of new product designs. This can shave large amounts of time of effort off the testing process, saving money and allowing businesses to bring products to market considerably faster. As time-to-market grows ever more important, this technology offers a significant advantage for manufacturers.

 

In short, video and data analytics in combination with AI provide a seamless, highly effective tool for boosting quality and driving efficiency in the manufacturing process.

 

Manufacturers need an innovative, value-driven partner for analytics and AI

One of the most common missteps with any new technology is losing sight of the desired business results. AI and analytics are both incredibly powerful tools, but it’s important to remember that they are tools all the same. They only hold value if they are applied properly and in service to a greater goal.

 

Siemens offers holistic experience with analytics and AI and we offer comprehensive expertise for digitalizing and optimizing various manufacturing processes. We have a proven track record of implementing and fine-tuning analytics tools to deliver incredible results for our clients.

 

It’s not enough to merely have analytics technology. Manufacturers need a partner who will help them unlock the greatest possible value from analytics and AI by producing better products more efficiently. If you want to learn more about how Siemens can help your organization get the most from these tools, contact us today.

Sure, the technologies at the core of digital transformation like AI and predictive analytics are extraordinary. But at the end of the day, savvy leaders know every technology is a tool - no more, no less. To successfully transition to a digital enterprise, it's crucial to understand the underlying business challenges, the desired business outcomes, and how to best use technology to get there.

With each passing day, more and more business leaders are recognizing the benefits of digital transformation. Executives are coming to understand the full potential of putting digital technologies at the center of their business processes to drive efficiency, agility and greater profitability overall.

 

However, the cost, time, effort and time required for a true digital transformation can be daunting. The technology is already here for digital transformation, but few organizations have realized their full potential. Furthermore, precious few business leaders have a concrete plan for undergoing this significant transition.

 

According to Accenture, “only 13 percent of businesses have realized the full impact of their digital investments, enabling them to achieve cost savings and create growth. The optimal mix of technologies could save large companies up to $16 billion.”

 

In the rush to become digital enterprises, systems integrators and similar businesses will play a crucial role in assisting transformation.


Gartner reports that “By 2021, 90% of global organizations will rely on system integrators, agencies and channel partners to design, build and help implement their digital experience strategies.”

 

Siemens is already working with businesses across the globe to facilitate their successful digitalization. We offer our client’s unique value in that we operate our own factories around the world. As a result, we have firsthand experience with the same challenges our customers are facing. Our experiences are embedded in the projects and solutions we deliver, creating tremendous value for our customers. With deep experience in industry verticals, automation, operational technology, software and services, we can offer unparalleled expertise when it comes to digital transformation.

 

Digital transformation must be guided by clearly defined business outcomes

Choosing the right partner for the digitalization process is crucial. With a process as complex as digital transformation, it’s easy to lose sight of the big picture. Gartner reports that “Successful digital business service engagements are defined by the client business outcomes they seek to achieve, not by the specific technologies and processes providers employ to enable those outcomes. The market, unfortunately, is more focused on the latter.”

 

The advanced technologies at the heart of digitalization are extraordinary, and it’s not hard to find impressive case studies on the cost-savings, quality improvements, and efficiencies gained with them. However, digitalization partners must always focus on the desired outcomes before assessing what technologies will comprise the best solution.

 

There is no “one-size-fits-all” solution when it comes to the digitalization journey. Technologies that are invaluable for one organization may provide marginal utility at best for another. At Siemens, we design and implement solutions that support clearly defined business objectives. The result is measurable business outcomes that strategically address your unique challenges.

 

A trusted partner for collaborative, end-to-end digital transformation

The Siemens Digital Enterprise and Digital Services group in the United States is the trusted partner to customers in digital transformation projects across OT and IT. We offer dedicated consulting, development, integration, implementation and optimization services that support your journey to a digital enterprise. Our broad portfolio of services and digital assets allow us to deliver data-enabled digital solutions that create measurable business value and a positive return on investment.

 

With our extensive digitalization expertise and comprehensive industry knowledge, our experts support you on your journey to become a digital enterprise. The three stages of consulting, implementation/integration, and optimization are based on our end-to-end approach, in which we are there to support you from the start of your digitalization project through to the stage of continuous improvement. We work with you to develop the best possible approach and coordinate the solution that addresses your company’s specific needs.

 

Crafting a road map to get from where you are to where you need to be

The digital transformation journey starts with analyzing the current level of digitalization. On that basis, we then develop a digitalization strategy that’s tailored toward the customer’s unique needs. The output of that work is a clear roadmap that explains the steps required over a period of time. Digital transformation is not something that happens overnight. It’s a journey that occurs over an extended period. Our team partners with your organization to develop a clearly defined, well-articulated roadmap to guide this complex journey.

 

The next step is to design the individual solution elements and to ensure that it can be implemented and integrated with existing systems and solutions, in order to deliver the strongest business value. As a result, our customers benefit from achieving shorter times to market, greater efficiency and flexibility, and higher product quality.

 

Cybersecurity solutions for digital enterprises

Of course, cybersecurity concerns are of the utmost importance. With the proliferation of the Internet-of-Things, companies must take great precautions to ensure that increasingly digitalized processes are secure from any threats.

 

To protect our customers, we offer a comprehensive portfolio for industrial security services including security assessments, scanning services, consulting and security monitoring services. Furthermore, we provide solutions for anti-virus, whitelisting, network segmentation, endpoint protection, anomaly detection, vulnerability detection and management capabilities. Altogether, these solutions ensure your digitalized operation can run smoothly without fear of data leaks, malware interruptions or other security breaches.

 

Leveraging analytics and artificial intelligence

Analytics and artificial intelligence are two technologies driving revolutionary changes in manufacturing and business in general. By leveraging these tools, companies can use Siemens Predictive Services to identify machine failures before they occur. Downtimes are expensive, especially when they’re unplanned. The unpredictable failure of an individual section of a production line can put all your production out of action for several days or longer. With Predictive Services, thanks to the accumulated know-how of our service experts combined with cutting-edge technologies like artificial intelligence, you can see into the future and avoid unpleasant surprises through optimized maintenance planning.

 

But our Predictive Services offer value beyond simply averting disaster. This platform offers well-grounded analyses of the condition data, sources of error, and specific recommendations from our experts with insights gleaned from artificial intelligence. As a result, you can not only prevent machine failure, but make holistic changes to reduce maintenance costs and make the entire process more resilient.

 

Oftentimes, digitalization initiatives focus on risk reduction and optimization from the perspective of asset availability. Typical projects emphasize maximum machine uptime while avoiding unplanned downtime. While this is certainly valuable, it falls short of the full potential offered by analytics and AI. Our AI-based solutions can deliver greater business value by increasing throughput, lowering scrap/waste, increasing finished product quality, and/or reducing resource input.

 

It’s time to think bigger and design the future of your business

The AI solution described above is a perfect example of the gap between the potential of a truly digital enterprise and the limited application of these technologies we see today. Many organizations are taking the first steps in capitalizing on the solutions offered by Industry 4.0. However, few businesses grasp the full potential of digital transformation - and even fewer are taking the necessary steps to revolutionize their business processes.

 

What appears to be a small gap now will soon become a staggeringly wide divide. The result will be vastly greater market share, profits, agility, and customer experiences for those that start the transformation journey early. Here at Siemens, we are ready to help you be at the forefront of the digital transformation happening in your industry. The question is, are you ready to design the future of your business?

In a rapidly evolving world with ever-shifting markets, agility is everything. By putting digital technologies at the center of how they operate, businesses can respond to new trends and changes with more agility than ever. Digital transformation isn't about short-term gain - it's about growth and profitability for the long run.

Executives in virtually every industry are facing a turning point. With every passing year, it becomes clear that many traditional business processes are becoming irrelevant or antiquated.

 

The refinement and advancement of technologies such as cloud computing, blockchain, AI, and the Internet-of-Things has set the stage for radical changes in manufacturing, as well as business in general. Over the next several years, we are going to see a tremendous divide between those who digitally transformed their organizations early and those lagging behind.

 

Although virtually every executive understands the importance of technology, many leaders don’t fully understand the revolution that is occurring across entire value chains. Even fewer still have a concrete plan to transform their business processes before the competition. According to Gartner, “Despite the digital transformation hype, 54% of leaders say their organization doesn’t have a clear vision for transformation, and only 11% have scaled digital business transformation.”

 

The businesses that are late to transform will be leaving billions on the table - if not closing their doors. At the same time, initiating change at this scale is anything but easy.

 

Before we dive further into these topics, let’s take a moment to review some basic concepts regarding digital transformation.

 

What Is digital transformation?

In short, digital transformation is the reimagining of business in the digital age. It’s about leveraging cutting-edge technologies to build a business that can move with true agility in response to the breakneck pace at which markets are changing.

 

As part of digital transformation, companies create new business processes or modify existing ones. In many cases, this also includes reshaping customer experiences to meet evolving business and market requirements.

 

The result of digital transformation is becoming a digital enterprise - an organization with digital technology at the center of how it operates. At a digital enterprise, technology is at the core of how it produces products and services, seizes competitive advantages, creates value, and generates revenue.

 

Organizations that successfully transition to digital enterprises gain a tremendous competitive advantage. By putting digital technologies at the center of their processes, they become more economically efficient and more capable of dynamically responding to shifts in the market. Becoming a digital enterprise positions your organization for long-term growth and profitability in a rapidly changing world.

 

Why digital transformation cannot be ignored
If your competitors aren’t already undergoing digital transformation, it won’t be long before they start. Regardless of your sector, digital transformation offers a plethora of opportunities for creating new business models, improving operational efficiency, enhancing customer experiences, and differentiating your products/services, among other benefits.

 

In the automotive industry, companies are becoming more and more focused on providing connected mobility and transportation solutions. Digitally enabled services will prove crucial in the development and manufacturing of software-driven, battery-operated, and artificially intelligent autonomous vehicles.

 

Sectors such as aerospace, defense, and consumer-packaged goods are finding themselves in similar situations. As manufacturers contend with new competitors, technologies, and consumer demands, digitalized processes grow increasingly important.

 

Digital solutions like analytics are dramatically changing how A&D companies design and manufacture products. In CPG, manufacturers are recognizing the tremendous potential for improving operational efficiency with the help of blockchain, cloud computing and artificial intelligence.

 

Government entities like the Department of Defense are beginning the process of digital transformation as well. The DoD has already published a detailed transformation strategy, and began their own digitalization projects in 2019. Cornerstones of the strategy include cloud, artificial intelligence, command, control, communications and cybersecurity.

 

The message for leaders is clear: digital transformation is not a question of if, but a question of when. The sooner organizations can digitalize their business, the sooner they reap the benefits of being a holistically digital enterprise.

 

Is your company falling behind?

It’s obvious that digital transformation is a must for success in the years ahead. Unfortunately, most businesses today are not taking full advantage of digital technologies. According to Accenture, “only 13 percent of businesses have realized the full impact of their digital investments, enabling them to achieve cost savings and create growth. The optimal mix of technologies could save large companies up to $16 billion.”

 

Most businesses have a long way to go before they become a truly digital enterprise. Here at Siemens, we are partnering with a variety of leading organizations to facilitate their successful digitalization. Our organization already operates our own factories across the globe. We understand the challenges our customers are facing firsthand - and we have experience addressing those same challenges with cutting-edge technology.

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