The Fourth Industrial Revolution is creating quite a stir in the manufacturing industry. Also known as Industry 4.0, it has already made a huge difference in the way industries work. While experts claim that it has the potential to change the world for the better, some of the challenges that it poses cannot be ignored.

Although it is a common concept across the globe, Industry 4.0 is still relatively new in India. Tata Steel was one of the first Indian companies to incorporate Industry 4.0 in its systems. Its plant in Jamshedpur was recognised as World Economic Forum’s Advanced Fourth Industrial Revolution (4IR) Lighthouse in 2021. Similarly, giants like Mahindra and Mahindra and Hindustan Unilever Limited, by integrating Industry 4.0 and its advanced digital technologies into their business, have paved the way for its expansion in the country.

This blog is aimed at helping you understand the significance of cybersecurity in Industry 4.0. by highlighting the challenges that you, as an organisation, can face. We will also navigate through some steps that you can take to reduce its risks and ensure the proper functioning of your business.

What you should know about the Fourth Industrial Revolution

The Fourth Industrial Revolution denotes the current and developing environment in which disruptive trends have changed the lives of people. It includes advanced technologies like the Internet of Things (IoT), robotics, virtual reality, and artificial intelligence (AI) and is aimed at enabling smart manufacturing and the creation of intelligent factories. With manufacturers integrating these technologies into their production facilities and operations, Industry 4.0 is set to revolutionise the way these companies manufacture and distribute their products.

💡 McKinsey has estimated that by 2025, the value creation potential of Industry 4.0 for manufacturers and suppliers will reach $3.7 trillion.

Have companies benefitted from this technology yet?

“At least 40% of all businesses will die in the next 10 years if they don’t figure out how to change the entire company to accommodate new technologies.”
-John Thomas Chambers, former executive chairman and CEO of CISCO Systems

 

Despite the speculation amongst industries about the adoption of Industry 4.0 and its repercussions, many companies have successfully employed its services in their functioning.

One of the first companies to adopt Industry 4.0 was Adidas, which, after 20 years of manufacturing in Asia, decided to relocate to Bavaria in 2016. They began work in a highly technological centre or ‘speed factory’ where production was handed over to robots and super-specialised workers. This has played a huge role in shortening its supply chain process and time to market.

Another company that has implemented artificial intelligence, virtual reality, collaborative robots and big data solutions in its Martorell factory is SEAT, the Spanish carmaker. Consequently, it has helped the company become more efficient and flexible as a manufacturer.

Some other well-known organisations that have successfully transitioned to Industry 4.0 solutions are Siemens AG, General Electric Company, Rober Bosch GmbH, Honeywell International Inc, Cisco Systems Inc, and Rockwell Automation Inc.

Does Industry 4.0 pose any threats to the manufacturing industry?

One of the biggest impacts that the Fourth Revolution has had on the field of manufacturing is the evolution of ‘smart factories’ through the use of the internet and automation. It has made the trade of information and data one of the most popular exchanges in the new globalised economy. This has opened up doors for new opportunities whilst inviting new threats as well with cybersecurity standing out in the red. While improvement in manufacturing is one of the primary requirements of any industry, you cannot overlook any vulnerability in cybersecurity.

How has Industry 4.0 escalated the risk of cyber-attacks for organisations?

Cyber-attacks are not a new concept and have had devastating effects on individuals, organisations and societies at large. They can lead to breaches of sensitive information and privacy violations which can result in a loss of trust amongst customers, clients, and partners. Additionally, it can also cause a significant disruption in operations, delay in delivery of products and services, and, in extreme cases, a complete shutdown of systems – not to mention the added expenses of fixing the breach, regulatory fines, and potential lawsuits.

Contrary to popular belief, Industry 4.0 does not have only good things to offer. It has also intensified the threat associated with cybersecurity. Some of the ways in which it has compromised the cybersecurity of organisations are:

• Industry 4.0 has led to an increase in attack surface. To understand its repercussions, let us first understand what an attack surface is.
  It is the number of possible points or attack vectors that give access to unauthorised users to a system to extract data.
  While Industry 4.0 has led to the adoption of interconnected devices and systems, it has, in turn, led to more entry points becoming available for cyber-criminals to exploit.
  When you incorporate new digital transformation ventures like migration to a cloud platform, addition of new hardware or software systems and increasing the number of remote works , remember, this can all lead to an expansion in attack surface.
  
  
• Industry 4.0 has increased the risks to physical systems. Did you know that the three main components of your system, the software, hardware and network, are most susceptible to a cyber-attack? Attacks on physical and digital domains like critical control systems and infrastructure can lead to severe consequences like financial losses, operational disruptions, and health hazards.

📌 In 2021, a cyberattack on a water treatment plant in Oldsmar, Florida had the potential of becoming a matter of national security. Hackers gained access to the plant and changed the levels of lye in the drinking water. This attack, which could have severely sickened the residents, was caught before it could inflict harm hence did not cause much damage.

• One of the biggest threats in cybersecurity introduced by Industry 4.0 is that of ransomware. This malware has the capacity to lock and encrypt your data, files, devices or systems thus denying your access to them. Hackers use this technique to demand a ransom payment in return for the decryption key.

📌 In 2023, Danish hosting firms CloudNordic and AzeroCloud suffered huge ransomware attacks with catastrophic consequences. These attacks led to a complete shutdown of the organisations’ systems, wiping both company and customers’ websites and email systems. The backups and production data were not spared either.

• Like most manufacturers, it is quite likely that you rely on third-party service providers for your functioning. Are you aware of the security risks these providers like software vendors and material suppliers pose because of the critical information and systems that they have access to?

📌 Two significant cases of high-profile attacks targeting Managed Service Providers include those of SolarWinds (2020) and Kaseya (2021) which impacted multiple companies and government agencies across the globe.

What can you do to curb these threats?

If your company has embraced Industry 4.0, you must ensure that the security of your organisation is top-notch. While this might sound like a lot of work, it is not impossible. Here are a few steps you can take to avoid a mishap:

• Implement robust security measures through strong encryption, regular updates and patches, network segmentation, access controls and systems to detect intrusions.
  
  
• Invest in security awareness and training of your employees.
  
  
• Implement security measures into the design and development of your devices and systems.
  
  
• Implement real-time monitoring and rapid incident response mechanisms that can promptly identify and alleviate cyber threats.
  
  
• Engage in information-sharing initiatives within the industry to understand the emerging threats and proactive measures that you can collectively undertake.
  
  

What is the future of Industry 4.0 and Cybersecurity?

The convergence of Industry 4.0 and cybersecurity is likely to continue to evolve in the future. This presents both challenges and opportunities. The threat landscape is likely to advance as Industry 4.0 technologies become more integrated and refined.

Artificial intelligence and machine learning that play a substantial role as a defence mechanism also act as tools for cyber attackers. While AI-powered security systems will help identify security threats and anomalies and respond to real-time attacks, they can also help cyber criminals create more powerful and evasive attacks. Therefore, your organisation will be required to implement robust security measures that include encryption, device authentication and secure protocols. Additionally, you should also invest in incident response plans, cyber insurance and recovery strategies with the goal of increased focus on resilience and response.

Evidently, the future of cybersecurity in the context of the Fourth Industrial Revolution requires a holistic and adaptive approach. This involves an optimum combination of technological innovation, skill development, regulatory frameworks and collaborative efforts to help address the challenges posed by evolving technologies and trends.