The document discusses the ongoing third industrial revolution brought about by advances in computing technology and networks. It describes how the first revolution involved mechanization to replace human muscle power, and the second used electricity and engines to replace muscle work. Now, the third revolution aims to replace human mental work with artificial intelligence through advances in computer technology, networking, and control systems. Everything is becoming digital and networked, changing many industries and aspects of society. However, this increased connectivity also introduces new cybersecurity risks that must be addressed.

1. THIRD INDUSTRIAL
REVOLUTION
Mikko Särelä
Postdoctoral researcher
Aalto University
Department for Communications and Networking
mikko.sarela@aalto.fi

2. MIKKO
SÄRELÄ
!
•Internet and cyber security
reseacher
!
•Post-doc, Aalto University,
School of Electrical Engineering
!
•Vice member of Helsinki City
Planning Board

3. HISTORICAL CONTEXT

4. FIRST INDUSTRIAL REVOLUTION
Democracy, nationionalism, conscription, printing press, railways, machine gun...

5. SECOND INDUSTRIAL REVOLUTION
Fordism, combustion engine, cars, planes, tanks, radio, television, total war,…

6. AERIAL BOMBINGS

7. NUCLEAR BOMB

8. HOWEVER

9. GROWTH DID NOT LAST

10. THE GREAT STAGNATION

11. A VIEW TO THE HISTORY

12. INDUSTRIAL
REVOLUTION
S
1.-> Machine replaces
human manipulation skills!
Some external energy:
wind, water, steam

13. INDUSTRIAL
REVOLUTION
S
2.-> Muscle work
replaced with general
energy: !
electricity, combustion
engine

14. THIRD INDUSTRIAL
REVOLUTION

15. NOW

17. THIRD INDUSTRIAL REVOLUTION
Rise of the computer intelligence

18. HUMAN MIND REPLACED
WITH MACHINE

19. PERFECT STORM OF

20. THREE INVENTIONS

21. ALAN
TURING
Computer

22. J. C. R.
LICKLIDER
Intergalactic computer
network

23. HAROLD
STEPHEN
BLACK
Control systems

24. THE THREE
INNOVATIONS
TOGETHER

25. NEW INDUSTRIAL
REVOLUTION

26. What can you do today that is not
influenced by digital systems?

27. Directly?

28. Indirectly?

29. Everything is digital
And soon everything will be networked

30. How about security?

31. The Change

32. Humans and mechanical
systems replaced

33. Digital networked systems

34. Everything digital,
everything networked
everything reachable

35. Human - digital difference

36. Humans
• Human processes are
distributed by necessity
• Good at cognitive tasks and
flexible in new situations
• Likely to react to wrong
information that is obviously
wrong
• Susceptible to social
engineering attacks, but
effects are limited
• Humans are reasonably good
at recognizing the unusual

37. Digital system
• Excel in following instructions
exactly
• Impossible to fool directly
• Unauthorized access can be
made difficult
• If access is gained, attacker
may change the process itself
• Digital systems are hard,
inflexible, and fragile
• When security breaks, it
breaks completely

38. EXAMPLES

39. Logistics
Currently perishables come to
stores via central distribution
points
!
Digitalization enables a
distributed delivery system of a
small unit size
!
Example: Mumbai Dabbawalas

40. Traffic control
• Self-driving cars
• Humans will be
forbidden from driving
on public streets and
roads
• Benefits: reduced
accidents, highway
capacity, << cost, etc.
• Potential risk?

41. SOCIAL PROCESSES

42. INDUSTRIAL
AUTOMATION

43. E-VOTING

44. MOBILITY AS A SERVICE

45. HEALTHCARE

46. AND SO MUCH MORE

47. COMMON TRAITS?

48. Future of employment:
How many jobs can be
replaced by
automation?
!
Carl Benedikt Frey and !
Michael A. Osborne!
September 17, 2013

49. Importance and Interdependence of our Critical Infrastructure
Immediate impact
Emergency services
Impact within hours
Impact within days
Transportation
and logistics
Communications
and information
Electricity
Government
services
Health services
Banking and
finances
Food delivery
Water
Industrial automation systems
control infrastructure
Control requires
communications
Food production
Other energy
Communications require
electricity
Electric grid requires
communications for control
National
defense
Industry

50. ICT CAN KILL

51. “SCHOOLBOY HACKS
INTO CITY'S TRAM
SYSTEM”

52. “CIA ADMITS
CYBERATTACKS
BLACKED OUT CITIES”

53. “BOEING 747
ENGINES CAN BE
CONTROLLED VIA
PASSENGER
ENTERTAINMENT
SYSTEM

54. “BLOWING UP
GENERATORS
REMOTELY”

55. “POPULAR
SURVEILLANCE
CAMERAS OPEN TO
HACKERS,
RESEARCHER SAYS”

56. “10K REASONS TO
WORRY ABOUT
CRITICAL
INFRASTRUCTURE”

57. IN 2013

58. WE ANALYSED FINNISH

59. INDUSTRIAL AND
BUILDING-AUTOMATION

60. INTERNET

61. WE FOUND

62. Q1/2013! Q4/2013! Difference!
Targets!
Online!
Ports
open!
2915!
1968!
1410!
4695!
3281!
2337!
+ 61 %!
+ 67 %!
+ 66 %!

63. Q4 / 2013!
2915 TARGETS
1968 1602+239 ONLINE
1410 1204 PORTS OPEN

64. REMOTE ACCESS – AND
SURVEILLANCE
(WEB, TELNET, YM.)
BUILDING AUTOMATION
(HEATING, WATER SUPPLY, DOOR LOCKS,
ETC…)

65. MANUFACTURING PLANTS
POWER PLANTS
WATER TREATMENT PLANTS
FACTORY CONTROL SYSTEMS
GAS STATIONS
PRISONS
HOSPITALS
HOMES, OFFICES, STORES, …

66. Siemens Simatic (S7, HMI, NET)
Schneider TSX
Schneider Modicom Quantum
Schneider clearScada
Pocket CMD (telnet)
EDW-100
Digi One SP and Realport
Moxa Nport 5210/5110
xwed 500
…

67. OPENLY REACHABLE
FROM THE INTERNT

68. HS 21.3.2013

69. 41,1!
2,48!
2,71!
2,79!
3,13!
4,15!
4,39!
4,76!
1,91!
0! 5! 10! 15! 20! 25! 30! 35! 40! 45!
FR!
FI!
JP!
GB!
SE!
DE!
CA!
ES!
US!
Percentage per country !
(out of 132775 targets in SHODAN)!

70. 0,7!
0,6!
0,5!
0,4!
0,3!
0,2!
0,1!
0!
ICS devices per capita (/1000 inhabitants)!
FI! SE! ES! CA! US! FR! GB! DE! JP!