Interview: What is the main security and privacy risks associated with the advent of connected vehicles?

WE WELCOME YOU TO WAC
Automotive sector all over the world is transiting through an
enormous change. This urges companies, which are already
highly energetic in terms of adapting new age technologies, to
keep up with the speed of global innovation. Extensive data
creation via digitization and connectivity are producing new
business opportunities while use of electric vehicle (EV)
batteries as well as latest technologies that are poised to
accelerate the development of autonomous cars have several
reverberations not just over automotive industry but also
computer science, oil and gas and construction industries.
Urban transformation have speeded up and redesigned with
the new possibilities that are to dramatically alter life in cities.
User experiences have created new demands and suppliers’
ability and skills to meet those, urged companies to make
incredible amounts of research and development.
The inaugural World Automotive Conference 2018 proudly hosts global leaders of industry from all
over the world as well as leading suppliers that are operating at the heart of the value creation in the
sector. To understand how top managers see and manage this breathtaking transformation, how they
adapt to the changing world, and face challenges during the transition, we conducted interviews with
both WAC 2018 participants and non-participants. Their perspective showed us that enormous
change has only began and it has way to go within a fiercely competitive environment.
Hope you enjoy those valuable sharing and insights,
Best regards,
Özlem Derici Şengül
WAC 2018 Research Consultant
2 World Automotive Conference

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İBRAHİM DÖLEN
Borusan Logistics CEO
What are the main advantages of integrating new age
technologies like artificial intelligence, IoT and/or smart
security in logistics industry?
İbrahim Dölen: Increasing customer requirements
continuously drive down the lead-times and increase
pressure on the supply chain. Next to that, making the
supply chain more sustainable by taking into account that
the return flow of goods is becoming the norm, it brings
further complications on the distribution networks. At the
same time, profit margins are under pressure due to
increased competition. At that point, the cutting-edge
technologies like artificial intelligence and IoT will help
logistics providers to improve the efficiency of their
operations. Increasing number of connected devices will
help logistics providers to collect more detailed shipment
data and AI will help logistics providers to create dynamic,
flexible and highly optimized distribution networks.
AI will help logistics providers to create
dynamic, flexible and highly optimized
distribution networks.
What is the main security and privacy risks associated with
the advent of connected vehicles?
İbrahim Dölen: In the summer of 2015 hackers were able to
successfully shut down a jeep at driving, last year a
device was uncovered that could hack GM’s OnStar
service and more recently, a car has been shown to be
hackable due to insecure APIs.
By 2020, there will be quarter billion connected vehicles on the
road, enabling new in-vehicle services and automated driving
capabilities. During the next five years, the proportion of new
vehicles equipped with this capability will increase
dramatically, making connected cars a major element of the
Internet of Things.
car manufacturers should act like new “data
protectors”.
Major threats against connected cars fall into two
categories: Safety and data privacy.
Modern motor vehicles increasingly are being equipped
with technologies that enable them to access information
via the Internet and gather, store and transmit data for
entertainment, performance and safety purposes.
Automated vehicles, vehicles with Vehicle-to-Vehicle
Communications technology, and other connected vehicles
can provide important benefits to consumers. At the same
time, these automated and connected vehicles are
expected to generate an enormous amount of data, some
of which will be personal and sensitive, such as real time
precise geolocation data. At that point, car manufacturers
should act like new “data protectors”.
sharing economy and visibility.
What is expecting us in logistics industry in the next
decade in terms of transforming the way you do business
with new age technologies?
İbrahim Dölen: Carriers not only have to adjust themselves to
these changing technologies and circumstances but also, they
have to create newer business models and profit from them.
There are two elements of the delivery journey to be
remastered: sharing economy and visibility.
Sharing technologies are expected to create more diffuse
ownership by increasing access to excess network capacity
and diverse assets. Platforms would seamlessly connect
ecosystem players to enable asset-light models and to create
an environment in which niche providers can grow rapidly.
The rise of IoT technology and block chain is expected to
enable high volumes and velocity of data (location, vehicle
load, available capacity, traffic…). This enormous data and
increasingly sophisticated analytics would create
opportunities for insight such as dynamic routing and
anticipatory shipping. The ways in which these two
dimensions develop will have a deep influence on the
future of the transportation sector.

MORITZ V. GROTTHUSS
Gestigon Gmbh CEO
sitting behind a steering wheel watching the road and being alert for anything that may happen
will be one of the least desirable statuses.
You say future of mobility is not about cars. Would you
please guide us about the mobility related technologies that
will alter our lives dramatically?
Moritz v. Grotthuss: I think, that the unit ‘car’ will get more
and more irrelevant if you require mobility. Mobility will
happen on very different devices/units depending on your
specific needs at a specific moment. This could be a
scooter, bike, car, shared car, taxi/UBER, bus, public
transport … whatever. The important thing will be your
mobility experience. How do you feel during your ride, can
you use the time in the manner that you want to (this could
be anything, from driving yourself for enjoyment, work,
play, sleep …). But sitting behind a steering wheel
watching the road and being alert for anything that may
happen will be one of the least desirable statuses.
How do you describe the change in user experience
especially considering the men’s adoration of their cars in a
very special manner?
Moritz v. Grotthuss: See above regarding the mobility
experience itself based on specific needs. Nevertheless,
there will still be people that adore their personal car, sure.
But we buy cars today for peek times – size based on the
entire family that goes on vacation, engine based on empty
roads without a speed limit, design based on a few
moments of showing off in front of a bar etc. With
selfdriving cars that will evolve as the cars, if you buy one
personally, which I think will be done less and less, you will
rather have a subscription model for mobility, which will be
used in a sharing environment while you don’t need it.
If we think businesswise, what is expecting us in
automotive industry in the next decade in terms of
transforming the way we do business?
Moritz v. Grotthuss: I think the core topics are subscription
based mobility, personalized mobility experience, services
rather than ownership… and cars will be much less
complex in regard of technology while moving to e-cars
and alternative engines. Core component of every car will
be the Human Machine Interfaces and the customized
experience that will be able to deliver.
core topics are subscription based
mobility, personalized mobility
experience, services rather than
ownership

OSMAN DOĞRUCU
Green Logistics Consulting Managing Director
INDUSTRY 4.0 ADVANTAGES AND DISADVANTAGES ON SUPPLY CHAIN
AND WAREHOUSE MANAGEMENT SYSTEMS
security in logistics industry?
Osman Doğrucu: The methods of artificial intelligence and
augmented reality have always been the substance of
rumination and speculation since very recently, where
they’ve started to take very a central role in our lives.
Intelligent technologies today are computer-aided systems
that completely control all industrial pipelines. They can
operate autonomously and on this account all processes
can be managed independently.
Today’s logistics do not resemble one-way storage of
goods seen up to a few years ago. This is due to new web
technologies that allow an entirely new level of interaction
within the moving parts of a given logistics eco-system. As
these technologies continue developing at a rapid pace,
several partially and fully automated logistic frameworks
are already readying for deployment.
For example, the Industry 4.0 workflow includes the
concept of IoT (Internet of Things), which is a blanket term
over efficient and concurrent use of multiple resources in a
given pipeline, where members of this pipeline exhibit
harmonious agency. This new approach superiority is
evident in its ability to reduce machine failures, idle time in
production, and overall, makes for a more efficient logistics
pipeline.
New vehicles, new fuel and energy sources, infrastructure
and new employment areas will affect all types of logistics,
especially transportation logistics. In the light of the
historical development of industrial revolutions, Industry
New vehicles, new fuel and energy sources,
infrastructure and new employment areas will
affect all types of logistics, especially
transportation
4.0 will affect both the revolution and the direct logistics
processes that will be created in the manufacturing
industry. There used to be 4 truth of logistics, but now there
are 7 truths. The Industry 4.0 truths can be summarized as
follows: providing the right product, from the right source,
with the right methodology, the right shape, the right price,
the right amount, and the right time.
But we are talking about an integrated, self-managing, self-
updating, self-monitoring system. The machine will send a
request for production to the supplier when a stock runs out,
and it will automatically call for a truck when the production is
done and is ready to be shipped. These machines will not only
do these tasks by communicating with themselves, but take
care of the transactions automatically as well.
System will even choose the most suitable supplier. For
example, a customer will be able to custom design a car in
their home through our web interface. Then, our program will
alert a custom pipeline in our factory, check for parts in the
factory by itself, and if certain parts are missing, will order
these parts from the most suitable supplier. This program will
also be able to calculate where to stock the car when it’s
custom made, forecast how many days it will stay in stock,
and calculate when the customer will receive it.
System will even choose the most suitable
supplier.

When we compare Industry4.0 advantages and classic
ERP programs advantages We see below points ;
- Space-efficient storage. This will save in warehouse areas
and volumes. Ex. Kardex Remstar applications, vertical
storage solutions
- ERP’s are integrated warehouse management software.
So the error will be absolutely minimal. Prevention of
losses due to lack of communication in monolithic systems
that have one point of failure.
- Automatic and controlled product circulation. This will
allow for increased work safety and fewer work accidents.
This will naturally result in risk reduction resulting from
controllability, especially in hazardous material logistics.
-Line feed, standby modules. So perfect stock
management, “0” inventory loss.
- Automatic finished product warehouses. This will allow for
unmanned warehouses, fast vehicle loading and unloading
systems that can work 24 hours a day, 365 days a year.
Cellular transfer storage systems.
For distribution centers and warehouse management
systems that implement Industry 4.0 technologies, data
needs to be collected, analyzed, acted on, and secured in
order to partake in the data driven decision-making Industry
4.0 advertises.
Osman Doğrucu: If there is any problem or jamming in the
system, chain accidents may occur.
If you have a non-secure network, your rivals can get into
your system and get your business information.
When your company data is stolen by hackers, the damage
to the system will be huge. Nowadays, there are cases in
which a company’s data can be stolen and be ransomed
back for exorbitant prices.
When major natural disasters or events occur, such as
earthquakes, floods, decision-making algorithms in older
transport systems will be insufficient, and systems may
collapse.
When your company data is stolen by hackers,
the damage to the system will be huge.

NADER VAHHAB AGHAI
Mammut Khodro Vice President
security in automotive industry? What is the main security
and privacy risks associated with the advent of connected
vehicles?
Nader Vahhab Aghai: Now, with the development of
artificial intelligence, or even the connected objects, we are
seeing more intelligence and more manageable
applications, which can reduce costs. On the other hand,
this relationship between objects can cause more human
dependence and constraint. As much as a person becomes
more dependent on this technology, his decision-making
power and thought become less and, as a result, in crisis
situations, he cannot be expected to behave in the least.
This is a subject that is dealt with less and it is necessary
for sociologists to deeply influence the effects of such
technologies on individual human life.
An example is the percentage of touchscreen mobiles in
societies. Without these mobiles, life has become harder
and people are more vulnerable and more restricted.
Imagine a day’s electricity will shut down in a city, then how
will human beings live. The result is that although these
types of technologies can be useful and comfortable, on
the other hand, they will have their own problems. I think
that in developing such technologies, without creating
infrastructure and culture among the people, we will not
find a good result, and we have to make fundamental
reforms in the culture of societies.
this relationship between objects can cause
more human dependence and constraint.
Is it realistic to think that mega cities will turn their public
transformation to autonomous vehicles in the next decade?
there are still people who would be more
pleased to read the newspaper on paper
Nader Vahhab Aghai: For this question, there are two main
indicators: the extent of development of societies, and the
extent to which people are developed and updated.
Obviously, any community is looking for more comfort and
convenience, and the use of self-regulators can lead to this
goal. But if we want to say with certainty that in the next ten
years we will see the use of these cars in mega cities, I will
answer a little bit with consideration. My personal inference
is that the use of self-portraits depends entirely on the
culture and development of the countries and the people of
the communities. Obviously, in the underdeveloped and
underdeveloped countries, this will not be the case, and
conversely, in advanced societies, we will see an ever-
increasing use of this technology. But this is one day. The
second is the level of development and updating of people.
You know, there are now digital newspapers, but there are
still people who would be more pleased to read the
newspaper on paper than to read digital resources.
Obviously, even with the ever-increasing growth of selfies,
we will see people who are still adhering to the traditional
system.

JAN BURDUNSKİ
Executive Director Hyundai Motor Company
Brussels Office
security in automotive industry?
Jan Burdunski: Our industry is always thriving to improve
the safety of our customers and make the vehicles more
efficient in their fuel consumption. Additionally, through
intelligent technology a lot of time could be saved by
avoiding congestions or finding a parking space. These
services are vital to keep ourselves competitive and ensure
customer satisfaction.
Jan Burdunski: Whenever it comes to new technologies,
many first ask about the risks and not the benefits that
come from them. That being said, the industry as a whole
and each manufacturer has a great responsibility that no
security breach that put the passengers at risk occur and
that the latest and strictest privacy rules apply.
What is expecting us in automotive industry in the next
decade in terms of transforming the way you do business
with new technologies?
Jan Burdunski In the next decade we will see more
intelligent ways of utilizing the resources of a vehicle.
Shared ownership concepts and a transition from
manufacturing towards services will disrupt our industry
and create many opportunities for new market entries and
companies that can adapt quickly enough.
through intelligent technology a lot
of time could be saved by avoiding
congestions
we will see more intelligent ways of utilizing
the resources of a vehicle.

ADNAN ABU-DAYYA
QMIC Qatar CEO
security in automotive industry?
Adnan Abu-Dayya: In general, IoT and artificial intelligence
(AI) play complementary roles where each makes the other
more useful and relevant. While IoT enables the collection
and aggregation of sensing data from multiple sources, AI
uses this data to build necessary prediction and application
intelligence capabilities to automate key tasks and enable
new services.
Hence, in the automotive industry where data collection
and processing is becoming increasingly more pervasive
especially as the level of automation increases. It is one of
leading industries where the value and power of integrating
IoT with AI is critical to realize the industry road map
especially in relation to autonomous driving, dynamic map
generation and updates, efficient implementation of
scalable ride-hailing systems, delivering seamless multi-
modal services through mobility as a service business
model, etc.
In particular, the large scale deployment of autonomous
cars and driving will significantly depend on the ability to
use the combination of IoT and AI flawlessly to ensure safe
driving and proper interaction with dynamic and fixed road
objects. This will ultimately depend on realizing real time
prediction through AI and based on data and other services
enabled by IoT.
Adnan Abu-Dayya: As more objects become connected,
undoubtedly the level and nature of security risks increase.
Connected vehicles represent a good example where such
risks are quite diverse and, hence, they need to be
understood and tackled properly at industry level, vendor
level, service provider level, and user level.
For connected vehicles such risks can cover different inter-
related aspects which include: embedded devices security
like CAN bus and ECU chip; intelligent devices security;
services platform security; data security; and
communication security as all communication are done
through wireless channels.
Tackling all these risks will achieve the security goals of:
ensuring data integrity such that information is protected
from modification or deletion, enforcing access
authentication such that it is not possible for unauthorized
users to pose as valid users, and protecting user privacy
such that is not easy to track personal cars or access
personal data without proper authorization.
In general, IoT and artificial intelligence (AI)
play complementary roles where each
makes the other more useful and relevant.
Is it realistic to think that mega cities will turn their public
transformation to autonomous vehicles in the next decade?
Adnan Abu-Dayya: The adoption and large scale deployment
of autonomous vehicles will eventually happen but will go
through an evolutionary process to work out all technical,
legal, operational, regulatory, business and user acceptance
issues. However, there are certain use cases and
embedded devices security like CAN bus and ECU chip; intelligent devices security; services
platform security; data security; and communication security as all communication are done
through wireless channels.

deployment scenarios where the adoption of autonomous
vehicles will happen in the first wave of market adoption.
Some public transportation services such as shuttle buses
in fixed routes or campus like environments will probably
see early adoption of autonomous vehicles.
Also, it is expected that the use of Autonomous Vehicles for
private and public transportation will be adopted faster and
at a large scale in smart cities being built around the world
especially in Southeast Asia and the Middle East.
What will the most surprising use of smart solutions in
traffic in the next couple of years?
Adnan Abu-Dayya: Through the combination of AI and IoT,
it is expected that more intelligent and personalized
services will be available to support personal multi-modal
mobility and mobility as a service business models.
Another area that will see tangible progress is the area of
connected and automated vehicles (CAV) which will be
enabled standard-based technologies that will allow cars to
communicate with each other and the road. In the next 2
years, this technology will transit from the field pilot stage
to commercial deployment stage especially as lead car
vendors started to make the support for this technology as
a standard feature in new models. Applications based CAV
will have significant impact on road safety by reducing
accidents through providing timely alerts to drivers and/or
triggering automated actions by the vehicle.
Through the combination of AI and IoT, it is expected that more intelligent and personalized
services will be available to support personal multi-modal mobility and mobility as a service
business models.

Interview: What is the main security and privacy risks associated with the advent of connected vehicles?

Interview: What is the main security and privacy risks associated with the advent of connected vehicles?

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Interview: What is the main security and privacy risks associated with the advent of connected vehicles?