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How Schneider Electric balances risk and reward for the IIoT

3 critical factors of IIoT cyber protection

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The benefits of the IIoT are undeniable. With millions of dollars to be saved through the reduction, or elimination of downtime, and enhanced productivity, entire industries are rethinking their approach to business in order to take advantage.

But the IIoT — as with any technology — isn’t a one-way street. As enterprises make more and more of their infrastructure and machinery smart and connected, the risk that these new systems could be compromised by cyber attack rises. A wide and deep cyber attack can have a crippling effect on a company’s operations, and can cost billions.

Related: Connecting Physical and Digital Worlds to Power the Industrial IoT

For a stark illustration of this reality, we don’t need to look further back than the summer of 2017, when the Russian-launched NotPetya virus sent two of the largest shipping and pharmaceutical companies into a technological free-fall. The global damage estimate: $10 billion. One year later, the affected companies are still dealing with the aftermath of the attack.

NotPetya was not a worst-case scenario, but there are lessons to be learned from this devastating event — especially in the world of the IIoT. Schneider Electric, a global manufacturer of electrical, and industrial automation and control products, notes that there are three critical factors to IIoT cyber protection.

  1. The first step is to realize that any connected system represents a possible point of entry for attack. Effectively configured and managed firewalls are a must, but these only prevent outsiders from penetrating a corporate network. There are still other ways for malicious code to enter an enterprise’s systems, as NotPetya showed.
  2. The second step is ensuring that all equipment with compute capability has been designed with security in mind. Schneider Electric takes a Secure Development Life Cycle (SDL) approach to its EcoStruxure IIoT platform and products. The process involves threat modeling, regular code reviews, and security testing, all aimed at hardening IoT products and software against cyber attacks.

    “At the device level, we are developing secure end-point capabilities at the level of the silicon or the software,” Cyril Perducat, Schneider Electric’s head of IoT, recently told HotTopics.
  3. Since no technological solution can be foolproof in an environment where people are a part of the process, the third — and arguably the most important step — is developing a cybersecurity-aware process culture within the enterprise. Every employee needs to be educated on the risks, and what they can do to reduce the chances of a cyber attack gaining a foothold in the first place.

Download: Connecting Physical and Digital Worlds to Power the Industrial IoT

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Avoiding the falsification of medicines with blockchain

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pharmaceuticals
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Counterfeit medicines are a problem around the world, with many producers of false medicines attempting to illegitimate drugs from pharmaceutical companies. Blockchain could be the answer to stem the tide and the U.S. FDA are interested.

Concerns with falsified medicines extend to where drugs which are targeted at those who are seriously ill. These types of medicines may be contaminated or they can contain the wrong ingredient or no active ingredient at all. Alternatively, the drugs may have the right active ingredient but at the wrong dose. In other words, such medicines may harm the patient or exert no beneficial effect at all.

The rise in counterfeit medicines is linked to a general increase in the number of people using the Internet to purchase commodities and this includes those using the Internet to self-diagnose and self-prescribe. This practice can lead to people purchasing ineffective medicines; medicines that normally require a prescription; or purchasing what they think are legitimate medicines but which are in fact fake.

For many years regulators, such as the U.S. Food and Drug Administration (FDA), Health Canada and the European Medicines Agency have taken measures to prevent counterfeit medicines from entering the drug supply chain. One such example of a practice designed to reduce counterfeiting is by implementing product serialization. Serialization requires a comprehensive system to track and trace the passage of prescription drugs through the entire supply chain.

An alternative could be based on blockchain. “Blocks” on the blockchain are made up of digital pieces of information, which store information about transactions, say the date, time, and transaction price. Blocks also store information about who is participating in transactions, and information that distinguishes the block from other blocks. The system is designed to provide transparency and security.

In theory, with a pharmaceutical blockchain it would be impossible to tamper with a medicine or to swap legitimate medicines with fake medicines. In addition, someone purchasing a medicine would be able to assess where the medicine came from (that is, did it come from a bona fide manufacturer?)

It is for this reason that the U.S. FDA is examining the potential for blockchain, as Engadget reports. The federal agency has begun a pilot program that enables the drug supply chain explore ways to track prescription medicine.

According to the FDA, blockchain will enable the “use of innovative and emerging approaches for enhanced tracing and verification of prescription drugs in the U.S. to ensure suspect and illegitimate products do not enter the supply chain.”

Pharmaceutical companies have until March 11, 2019 to apply. The pilot will not produce actionable results until 2023. In the meantime, more conventional methods for seeking to eliminate counterfeit medicines will have to suffice.

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Agriculture

Big data analytics provides first world vegetation maps

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agriculture
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Artificial intelligence and big data analytics have been applied to produce the first global map of the world’s regions where vegetation can and cannot be grown.

The Valencia University study assesses the global abundance of the phosphorus and nitrogen content in vegetation. Also assessed is the efficiency in water use. The scientists’ aim is to show where the best places are for agriculture and where environmental conditions are changing in response to climate change. The application of artificial intelligence and big data methodologies also enables an assessment to be made of our planet’s biodiversity.

Together with carbon, hydrogen, oxygen and sulfur, nitrogen and phosphorus are the principal chemical elements incorporated into living systems. They are strong signals of the suitability of different parts of the Earth for agriculture. Both nitrogen and phosphorus are needed by plants in large amounts (although excessive quantities can also cause environmental damage). In soil, nitrogen and phosphorus are typically found in the form of nitrates and phosphates.

The new global maps produced by the researchers gathered information from Google mass satellite observation data and then used a specially developed artificial intelligence program to assess the data and produce the color-coded maps. The satellites gathered temporal and spatial observations, and this produced a series of maps characterizing different biophysical parameters. To develop the maps required numerous observation-measurement pairings to be number crunched.

Speaking with Phys.org, lead researcher Álvaro Moreno explained why the maps were significant: “Until now, it was impossible to produce these maps because the required conditions weren’t available. We didn’t have powerful and accurate machine learning statistical tools, nor did we have access to great bodies of data or cloud computing.”

The new maps and the process behind them are published in the journal Remote Sensing, in a paper titled “Regional Crop Gross Primary Productivity and Yield Estimation Using Fused Landsat-MODIS Data” and an companion article in Remote Sensing of Environment titled “A methodology to derive global maps of leaf traits using remote sensing and climate data.”

The next steps are to use the technology to further assess the impact of climate change and to assess other important societal and ecological questions like the pressure on food production to meet population growth and the development of new technologies, like biofuel production.

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Culture

Which innovations will shape Canadian industry in 2019?

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Canada is in the midst of an economic shift. New and traditional industries are increasingly being driven by innovation and these advances in technology are shifting the economic landscape at an unprecedented pace.

This is the assessment by Borden Ladner Gervais, which is Canada’s largest law firm. The company has issued a new thought leadership report, titled “Top Innovative Industries Shaping the Canadian Economy”.

The report weighs in on the opportunities and risks Canada faces in order to maintain its status as an international leader in innovation across eight key industries: cybersecurity, the Internet of Things, smart cities, cryptocurrency and blockchain, autonomous vehicles, fintech, renewable energy and cannabis.

To find out more about the report and its implications for Canadian businesses, Digital Journal spoke with Andrew Harrison, a partner at BLG.

Digital Journal: Where does Canada stand as a global tech innovator?

Andrew Harrison: Canada has always been at the forefront of innovation. Products developed by Canadians or Canadian companies encompass a variety of industries and include medicinal insulin, the snowmobile, the telephone, the pager, BlackBerry Messaging, IMAX, the Canadarm and the goalie mask, to name a few. Canadians are also fast adopters of new technologies; email money transfer between individuals, which was inconceivable only a few years ago, has been used by 63 per cent of Canadians.

This is why Canada is recognized worldwide for its research and technological know-how, but we have to be mindful of the challenges in a global competitive market.

DJ: What potential does Canada have to grow faster? Is this sector specific?

Harrison: Canada is well positioned to succeed and take the lead in all innovative industries, but there are definitely sector-specific challenges that could limit this growth. For example, the lack of regulation as to whether cryptocurrencies are considered securities or not is creating uncertainty, which may restrain investment in this sector.

DJ: What are the risks that could hamper innovation and development?

Harrison: For any new product, financing is always an issue; with innovation, money becomes an even more crucial element. Companies must have access to capital – including from individual and institutional investors – if they want to bring their innovative product/process to life. Evolving politics and policies can also have a significant impact.

DJ: What framework will Canada need in the future to secure its innovation potential?

Harrison: The key element is finding a proper balance between regulating the issues that might be created by the innovation itself or its use and providing a space where innovations can thrive without too many restrictions.

DJ: What does the Canadian government need to do?

Harrison: In many cases, laws and regulations were enacted long before we saw these innovative technologies and products brought to life, so they need to be updated. In certain sectors, such as cryptocurrencies and autonomous vehicles, the Canadian government has yet to provide a framework that would define the playing rules for all participants.

The government will also need to take a look at its current regulations on privacy: the coming into force in May 2018 of the European General Data Protection Regulation (“GDPR”) and recent high-profile data breaches have created the need for stronger privacy guidelines. Failure to do so could prevent Canadian businesses from accessing the European market.

DJ: What can academia contribute?

Harrison: Universities play a big role in fostering innovation – they could be the home of research and innovation and incubators of ventures, entrepreneurs, and tech talent. Universities can partner with industry players and have their researchers work closely to solve key industry issues. This is already happening in Canada. The Smith School of Business and Scotiabank, for instance, have partnered to set up the Scotiabank Centre of Customer Analytics at Smith School of Business to bring together professors, graduate students and analytics practitioners to collaborate on applied research projects in customer analytics. The academia plays a big role in creating an innovation ecosystem.

DJ: What is Canada’s most pressing technological need?

Harrison: There is still much work to be done to connect with Canada’s rural and remote communities. In 2016, the Canadian Radio-television and Telecommunications Commission (CRTC) declared that broadband Internet amounted to an essential service and adopted minimal performance standards across Canada: 50 megabit per second download and 10 megabit per second upload. However, the evidence presented to the Committee by a variety of stakeholders shows that the digital divide remains prominent in Canada – it is estimated that it will take roughly 10 to 15 years for the remaining 18% of Canadians to reach those minimums. Canada needs to develop a comprehensive rural broadband strategy in partnership with key stakeholders and make funding more accessible for small providers.

DJ: What type of investment is needed with skills and training?

Harrison: Canada has a serious shortage of tech talent, which makes it imperative for both the government, the education, and the business sector to invest in raising and fostering STEM talents. To help businesses attract the talent they require, the federal government is offering hiring grants and wage subsidies to offset payroll costs for recent post-secondary STEM students and graduates.

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