6th International Disaster and Risk Conference IDRC 2016 Integrative Risk Management - Towards Resilient Cities. 28 August - 01 September 2016 in Davos, Switzerland

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Risks of Industrie 4.0 –
An Information Technology Perspective
Global Risk Forum
IDRC 2016
Davos, 29 August 2016
Josef von Fraunhofer
Scientist and Entrepreneur
1787-1826
Dr.-Ing. Thomas Usländer
Fraunhofer IOSB, Germany

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Content
1. Industrie 4.0 and Industrial Internet
2. Threats and Risk Assessment
3. Risk Mitigation and Conclusion
World Economic Forum
2016, Davos:
My contribution: Focus on IT Risks

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Industrie 4.0 – IoT Application on Industrial Production
Internet of
Things
Internet of
Services
Industrial
Appli-
cations
IoTS Capabilities

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Industrie 4.0 is …
mechanical
engineer
electrical
engineer
software engineer computer scientist
business analyst/engineer
ergonomist
politician
risk manager
Application of the
Internet ofThings and
Services to industrial
production
standardized networking of
cyber-physical systems
flexible production
( lot size 1)
integration of humans and
technology
increased efficiency,
especially in plant and
product engineering
Initiative to strengthen
the competitiveness of
the German industry
4th Industrial
Revolution
Research program of the
German government
usage of Internet technology
in industrial production
service-orientation in
industrial production
self-organization in
production sites
Completely networked
working environment
informed decision making in
production planning and
control
Creation of new
business model in
industrial production
secure plug &
work
OPC-UA
AutomationML

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Industrie 4.0 is …
Initiative to strengthen
the competitiveness of
the German industry
4th Industrial
Revolution
Research program of the
German government
Completely networked
working environment
Creation of new
business models in
industrial production
PoliticsGoalsTechnology
flexible production
( lot size 1)
integration of humans and
technology
increased efficiency,
especially in plant and
product engineering
self-organization in
production sites
informed decision making in
production planning and
control
secure plug &
work
Application of the
Internet ofThings and
Services to industrial
production (IIoT)
standardized networking of
cyber-physical systems usage of Internet technology
in industrial production
service-orientation in
industrial production
OPC-UA
AutomationML

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Industrie 4.0 – Advent of the 4th Industrial Revolution
Life cycle of assets is oriented at the
increasingly individualized customer
demands and encompasses
• idea
• order
• development and manufacturing
• product delivery
• recycling
• including all related services
Technical Plants
After Sales Services
Development of Products and Product Lines
Development of Production Plants

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Industrie 4.0 Application Scenarios (Source: Platform Industrie 4.0)
OCP – Order-Controlled Production AF – Adaptable Factory
SAL – Self-organising Adaptive Logistics
VBS –Value-Based Services
“plug-and-work”
e.g. smart
maintenance

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Content
1. Industrie 4.0 and Industrial Internet
2. Threats and Risk Assessment
3. Risk Mitigation and Conclusion

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Reference Architecture Model Industrie 4.0 (RAMI4.0)
PlattformIndustrie4.0/Hrsg. BITKOM, VDMA, ZVEI:
UmsetzungsstrategieIndustrie4.0 – Ergebnisbericht,Berlin, April2015
Architecturalaspects/
viewpoints

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Industrie 4.0 Challenges
Service
Network
Automation
Pyramid
Interoperability/Standards
IT-Security/Industrial Data Space®
Dependability and Latency
Machine Learning/Data Analytics
Human-Machine Collaboration
Revolution on Business Level
Evolution on Technological Level

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Production Networks in the Past
Internet Office Network
Production Network

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Production Networks Today
Internet Office Network
Production Network

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Production Networks Tomorrow
Internet Office Network
Production Network

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Major Security Risks (Source: BSI, Germany)
• Infection with malware via Internet and Intranet
• Infection with malware via exchange disks and external hardware
• Social engineering
• Human misconduct and sabotage
• Breaking and entering via remote maintenance channels

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Content
1. Industrie 4.0 and Industrial Internet
2. Threats and Risk Assessment
3. Risk Mitigation and Conclusion

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Risk Mitigation
Organisational
„Master Plan“ to ensure the IT Security for the production network
• Sufficient finanical budget and personal resources
• Clarified and clear responsibilities
• Risk awareness training and continued education of employees
Technical
Protection of production network
(e.g. vulnerability testing, intrusion detection)
Development of secure architectures, components and systems
Security-aware configuration
Certification

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
IT Security Lab – Check the Vulnerability of your Production Network
• Hybrid test
environment
• Real automation
components
• Simulated
processes
• Software-defined
network
• Intrusion detection
• Run cyber attacks
• Ex.: man-in-the-
middle
• Detect
• Observe
• Act
• Improve

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Intrusion Detection Systems based upon Machine Learning
2
1
3
4
n
SPS
Produktionsnetz Steuerungsnetz
SPS
PC Steuerung
Ethernet
OPC UA
Header Payload
IP TCP
Data 1, Data 2, … 1
2
3
n
Message
Physical Behavior
Data 1, Data 2, Data 3, …
Data 1, Data 2, Data 3, …
Data 1, Data 2, …
Anomaly
Detection
X(t)
N(t)
Y(t) production
network control network
learning of “normal” behaviour

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Statement
19
Only if the strategic importance of secure IT Architectures, adequate System
Engineering driven by a proper Risk Assessment and Mitigation is recognized,
this potential may be exploited.
Process Know-How IT Know-How
The potential of data, information and knowledge in industrial production is
still widely unexploited.
Up to now, optimization in industrial production has mainly targeted matter, energy
and cost.

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© 2016 Fraunhofer IOSB, Dr.-Ing. Thomas UsländerRisks of Industry 4.0 – IT Perspective
Davos, 29 August 2016
Dr.-Ing. Thomas Usländer
Fraunhofer IOSB
Head of Department “Information Management
and Production Control”
Fraunhoferstr. 1
76131 Karlsruhe, Germany
thomas.uslaender@iosb.fraunhofer.de
http://www.iosb.fraunhofer.de
THANKYOU FORYOUR
ATTENTION
Your research partner
for industrial applications,
Internet ofThings and Services
and Industrie 4.0