2017 Digital Evolution Report – CyberCrime, Digitization, Blockchain and Artificial Intelligence

Cyber-crime, Smart-Cities, Digitization, Blockchain and Artificial Intelligence are those words which really got the hype on the platform of IT in 2017. Cybercriminals have smacked many companies many times. Digitization is progressing despite lame internet connections. Blockchain became Gold Chain and Artificial Intelligence is experiencing an incredible revival.

Key Technologies 2017

Ransomware: The ransom and the cyber blackmailer

 

Ransomware remains a leader in digital security threats. According to ITRC Data Breach report, in 2015 more than 177,866,236 personal records exposed via 780 data security breaches, and the previous mentioned number lift up to 30% in 2016 with security breaches arising on multiple fronts, companies, healthcare systems, governmental and educational entities, and individuals started to realize how real the threat of cybersecurity attacks was. 2017 so far, was a very highlighted year for cyber-crimes. 519 Cyber-attacks were placed from Jan 2017 until September 2017 affecting financial sectors, health-care sectors, gaming companies, containing information about credit cards, health data of billions of people around the world. With all these attacks phishing, spying on webcams or networked household appliances (IoT) remain risky.

 

Very popular in this year’s cyber attack list are the #wannacry and Equifax data breach attacks. These attacks unbaled 300000 computer systems for 4 days and affected financial data on more than 800 million customers and 88 million businesses worldwide and more than 45% of all detected ransomware.

Cyber policies are currently very much in vogue, but in which cases of damage do these insurances actually comes in? ABA, American Bankers Association, explains how companies should best go about finding a suitable policy and what makes good cyber insurance.

 

The General Data Protection Regulation (GDPR): What needs to be changed?

 

Companies only have a few months left to prepare for the new European #DataProtection Regulation. On 25 May 2018, all companies managing personal data of citizens of the European Union will be required to comply with the new regulations and requirements of the General Data Protection Regulation (GDPR).

This regulation will impose significant new obligations on companies that manage personal data, as well as severe penalties for those who’ll violate these rules, including fines of up to 4% of global turnover or € 20 million highest amount being withheld. But what is to change concretely? Here is a “Guide to compliance with the EU GDPR” and a framework to become step by step GDPR-fit.

 

Digital Transformation: Slow Internet connections as a brake pad

 

Digitization is progressing, but most users still complain about slow Internet connections. Despite the 7th place in the worldwide internet ranking, Belgium is still far behind the world’s fastest internet country. Notwithstanding all the shortcomings of the national IT infrastructure, companies are dealing with the technical and organizational challenges that result from the digital IT transformation.

 

The crazy rise of Bitcoin

 

In the period of a year the value of bitcoin has been multiplied by ten. A bitcoin was worth “only” 1000 dollars on January 1, 2017 … and 8000 dollars ten days ago. In April 2017 Japan officially recognised bitcoin and virtual currencies as legal methods of payment. You should know that Bitcoin represents less than 50% of the money supply of all cryptocurrencies in circulation. this is partly explained by the network situation and the rise of the Ethereum currency. Even if bitcoin is a legal in the vast majority of countries around the world, only a few governments have recognized the legal status of bitcoin in a particular regulatory manner.

 

IoT Projects: The 5 Biggest Mistakes and the Five Steps to Success

 

Closely linked to Digital Change is Internet of Things (IoT) and Industry 4.0 projects. Pioneers already pointed out the four biggest mistakes in IoT projects. If a company wants to exploit the potential of the IOT, it means a lot of work and often frustration – the technical, commercial and cultural challenges are manifold. Until an IoT solution is successfully established on the market, many decisions have to be carefully considered.

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But how does an IoT project succeed? Four steps are needed to make an IoT project a success.

 

Blockchain: The new gold chain

The blockchain is a much-debated technology with disruptive potential and three key characteristics: decentralization, immutability, and transparency. It could help to automate business processes, increase the security of transactions and replace intermediaries such as notaries or banks. Blockchain turns out to be the silent revolution that will change our lives. On top of that, it can turn into a gold chain for early adopters.

 

Cloud: Companies use public cloud despite security concerns

For years, companies have avoided the public cloud, as it is difficult to get a grip on in terms of security. However, this year, companies in the EMEA region increased their investment in the public cloud despite ongoing security concerns and lack of understanding of who is responsible for data security. However, caution is still needed to provide attacks such as wannacry.

 

Artificial intelligence

In 2016, Gartner put artificial intelligence and advanced machine learning in first place in its forecast for 2017, stating that this trend was really pronounced during 2017. Briefly 80 % of companies have already invest in Artificial Intelligence (AI). Nevertheless, one out of every 3 deciders believes that their organization needs to spend more on AI technology over the upcoming years if they want to keep pace with their competitors. Artificial intelligence penetrates into all areas of life. But how does it work?

One example is the automated and personalized customer approach to AI. With personalized campaigns and individual customer approach, the marketing of the future wants to win the battle for the buyer. As a rule, the necessary data are already available in companies, but the resources and software tools for their profitable use are not.
In 2018 Businesses will have an availability of AI-supported applications and should therefore focus on the commercial results achieved through these applications that exploit narrow AI technologies and leave the AI in the general sense to researchers and writers of science fiction;

 

The future of the human worker

AI systems can be used without a doubt. The world is becoming increasingly complex, which requires a thoughtful and wise use of our human resources. This can support high-quality computer systems. This also applies to applications that require intelligence. The flip side of AI is that many people are scared about the possibility of smart machines, arguing that intelligence is something unique, which is what characterizes Homo Sapiens. Not only that but many people still think that Artificial intelligence is the new threat to employment. It will replace the man and steal all the jobs. And they thinks that the future is dark.

Yet technological progress has never caused unemployment. On the contrary, since the industrial revolution, employment has multiplied. But, always, with each progress, fears resurge. Today, it is artificial intelligence that scares, or is used to scare. Economic history, and economic science therefore invites us to remain calm in the face of technological progress in general, and artificial intelligence in particular. By allowing the invention of new things to be exchanged, by stimulating entrepreneurship, it is not a danger but only an opportunity.

 

DATA based business models

Data Driven Business Model puts data at the center of value creation. This central place of data in the Business Model can be translated in different ways: analysis, observation of customer behaviour, understanding of customer experience, improvement of existing products and services, strategic decision-making, and marketing of data.

These data can be gathered from different sources, generated directly by the company, processed and enriched by various analyses and highlighted by data access and visualization platforms. Once data is collected, It’s essential to manage the multiple sources of data and identify which areas will bring the most benefit. Tracking the right data points within an organization can be profitable during the decision-making process. This allows an organization’s management to make data-driven decisions while amplifying synergy within the day-to-day operations.
As for revenue models, these can be based on a direct sale of data, a license, a lease, a subscription or a free provision financed by advertising.

 

#GDPR – Reform of EU Data Protection: 5 months left to be Fully Prepared

#GDPR - Reform of EU Data Protection- 5 months left to be Fully Prepared

Companies only have a few months left to prepare for the new European #DataProtection Regulation. On 25 May 2018, all companies managing personal data of citizens of the European Union will be required to comply with the new regulations and requirements of the General Data Protection Regulation (GDPR).

This regulation will impose significant new obligations on companies that manage personal data, as well as severe penalties for those who’ll violate these rules, including fines of up to 4% of global turnover or € 20 million highest amount being withheld.

Few months left before the entry into force of the Regulation, yet many companies have not started preparations and will have to develop and implement a compliance strategy. To facilitate their journey, we’ve listed, here below, eight rules to follow.

 

Understand your Data

 

The first step to comply with the GDPR is to understand how personal data is stored, processed, shared and used within the company. Through careful auditing, you will need to compare existing practices with the requirements of the new regulations and identify the changes needed to ensure your business in the way that best suits you. Remember that the obligations of the GDPR do not only apply to the strategies and measures put in place by your company but also extend to the providers who process personal data on your behalf.

 

Determine who is responsible for data protection

 

If some companies will have to appoint a data protection officer, everyone working within the company will have to adopt a data protection compliance program. Data protection officer may need to strengthen his strategies in this area and train his staff.

Please note that not all companies will necessarily have to appoint a Data Protection Officer, but good practice suggests that such a delegate is essential for companies that engage in two types of activities: large-scale processing of specific categories of data and large-scale monitoring of data, such as behavioral advertising targeting.

 

Ensure a legal basis for Data processing

 

Your company will want to examine the legal basis on which your strategy for handling various types of personal data is based. If it is based on consent, you will need to identify the method used to obtain that consent and will have to clearly demonstrate how and when that consent is given. Relying on consent means that data subject can withdraw his/her consent at any time and that data controller must then stop any data processing activity about this data subject.

 

Understand the rights of the people concerned

 

In accordance with the GDPR, any person whose data you process is given new rights, including the right of access to personal data, the right to correct and delete such data, or the right to portability of personal data.

Can your business easily locate, delete, and move customer data? Is it able to respond quickly to requests for personal data? Does your company, and the third parties that work for it, keep track of where these data are stored, how they are processed, and who they were shared with?

 

Ensure confidentiality from conception

 

As part of the GDPR, companies are required to implement a confidentiality strategy from the design stage when developing a new project, process, or product. The goal is to ensure the confidentiality of a data’s project as soon as it is launched, rather than implementing retrospective confidentiality measures, with the aim of reducing the risk of violation.

Have you limited access to personal data to those who need it in your business? A data protection impact assessment is sometimes necessary before processing personal data.

 

Be prepared for violation

 

Your company will need to implement appropriate policies and processes to handle data breaches. Make sure you know which authorities you will need to report any data breaches, as well as the deadlines. Any breach may result in a fine. Put in place clear policies and well-practiced procedures to ensure that you can react quickly to any data breach and notify in time where required.

 

Communicate the main information

 

In accordance with the GDPR, you will be required to provide the data subject with the legal basis for the processing of their data and to ensure that they are aware of the authorities from which they may lodge a complaint in the case of any problem. Make sure your online privacy policy is up to date.

 

Collaborate with your suppliers

 

GDPR compliance requires an end-to-end strategy that contains vendors processing personal data on your behalf. The use of a third party for data processing does not exempt companies from the obligations incumbent on them under the GDPR.

 

With any international data transfers, including intra-group transfers, it will be important to ensure that you have a legitimate basis for transferring personal data to jurisdictions that are not recognized as having adequate data protection regulation. Verify that the third-party data processor on your behalf has established strict data protection standards, has extensive experience in the field of large-scale data security management, and it has tools to help improve data governance and reduce the risk of breach.

 

Ensure your vendor meets globally recognized standards for security and data protection, including ISO 27018 – Code of Practice for Protecting Personal Data in the Cloud. Ask your vendor to provide you with all information about the network and data security who resides there (for example, its encryption policies and controls in place at the application level), its security policies, as well as its training, risk analysis, and testing strategies.

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Vertiv: #DataCenter of Industry 4.0

Data Center Trends

When it comes to deploying IT capacity at the edge, a lot of environmental factors can influence organization’s needs. Each business will vary in deployment size, environmental isolation requirements and ease of transferability to name just a few. So, with the revolution of Industry 4.0, there are many options for your edge data center investment.  As the next generation of data center will no longer be limited to central, large-scale facilities, but will seamlessly integrate the edge of networks that are becoming increasingly intelligent and mission-critical.

 

These 4.0 data centers are currently under construction and will significantly shape the IT networks of the 2020s. The emergence of this edge-based infrastructure is one of the top five data center trends identified by a global panel of experts from Vertiv, formerly Emerson Network Power, for 2018.

 

The main reason and motivation behind a new IT infrastructure are the growing volumes of data-driven by smartphone use and the #InternetOfThings in particular – so they can meet the growing demands of consumers. While companies can go many ways to accommodate this growth, most IT executives choose to bring the infrastructure they need closer to the end user – the edge of the network. Whichever approach companies choose, speed and consistent services will be critical to consumers. That infrastructure needs to be scalable to accommodate accelerating data growth and flexible to allow new ways to use real-time data analytics. 

 

In the past, Vertiv had identified trends around cloud, integrated systems, and infrastructure security. For 2018, the company expects the following five trends that will shape the data center ecosystem:

 

Development of the 4.0 Data Center

 

Generally, large data centers have been placed where energy costs are lower and space is inexpensive. To overcome speed, space, availability issues – Edge data center must be placed much closer to the users. These data center will be generally smaller but more of them in a kind of mesh network arrangement. Because whether it’s a traditional IT cabinets or 150-square-foot micro data centers, companies rely more and more on the edge of the network. 4.0 data centers will give companies the possibility to integrate edge and core holistically and harmoniously. Thus, these new data center architectures are much more than simple and distributed networks.

 

This development is made possible by innovative architectures that provide real-time capacity through scalable and cost-effective modules. These data centers will be cost-effective via the usage of optimized cooling solutions and high-density power supplies, as well as lithium-ion batteries and innovative power distribution units. In addition, these concepts integrate state-of-the-art monitoring and management technologies that allow the simultaneous operation of hundreds or even thousands of distributed IT nodes. As a result, complex structures dissolve. Latency and acquisition costs decrease and utilization is optimized. In addition, enterprises can add network-based IT capabilities when needed.

 

Cloud providers focus on colocation

 

Even though the revenue from wholesale and retail data center colocation market worldwide will reach up to 33 billion U.S dollars, with the increasing numbers of IoT devices, cloud usage is increasing so rapidly that cloud providers often cannot meet the demand for capacity. In most cases, providers focus on delivering services and other priorities, rather than building new data centers. They compensate for under capacities with offers from colocation providers. By focusing on efficiency and scalability, colocation vendors can quickly meet the increasing demand for data center capacity while further reducing costs. And the provider has the freedom to choose their colocation partners that best meet their end-user needs and enable edge computing.

 

Reconfiguration of the data centre middle class

 

With the evolution of the market and rapidly changing consumer’s needs, it is no secret that the biggest growth area in the data center market will be in the hyperscale environment – typically cloud or colocation providers – and edge computing. Traditional data center operators now have the opportunity to reorganize and configure their facilities and resources that are critical to local operations thanks to the growth of colocation and cloud resources.

Multiple data center companies will continue to consolidate their internal IT resources. They will probably use all the options for outsourcing to the cloud or to work with colocation providers and reduce their own infrastructures. Their motivation for this transformation will be quick configurations that can be implemented rapidly and are scalable at short notice. Certainly, these new facilities will be smaller, but more efficient and safer – with high availability at the same time. This matches perfectly to the extremely critical nature of the data that these companies want to protect.

 

High-density Data Center

 

High density has been a hotly challenging subject in the world of data centers for years. But with global data consumption in the zettabytes—and the subsequent demand on IT resources—it’s finally the time to start building up, not out. The data center is all about power and cooling, and high density is how you maximize the usage of those two things.

Over the past decade, data centers have made huge advancements to be able to support the high-density computing of today. Traditionally, data centers used multiple racks of low-power systems that weren’t capable of getting work done efficiently. This is about to change!

Although densities below 10 kW per rack remain the standard, 15 kW is no longer a rarity in hyperscale facilities, and some even approach 25 kW. The main driver of this transformation is the introduction and proliferation of hyper-converged computing systems. This expansion of hyper-converged computing systems is driven by products that are offering new levels of automation, tighter integration between technologies, and, in many cases, software-defined solutions based on scale-out architectures.

 

The world is reacting to edge computing

 

By bringing processing and computing capacities to the edge of the network, businesses reduce latency by highlighting processing and lightening the load on the primary network, supporting better, faster decision-making. The decision to implement an edge computing architecture is typically driven by the need for location optimization, security, and most of all, speed. Three main reasons for the transition to edge computing are the growth of IoT, the pace of technology-empowered business, and evolving user expectations. As today’s data management systems require the most immediate information to support “real-time” decisions that can have an impact of millions of dollars to the bottom line, more and more companies are shifting their computing capacity to the edge of their networks. Also, location optimization reduces data processing from minutes and hours to milliseconds and microseconds and as close to real-time as you can currently get. 

 

About Vertiv
Vertiv designs, builds and services critical infrastructure that enables vital applications for data centers, communication networks and commercial and industrial facilities. For more information, visit VertivCo.com.

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Industry 4.0: Challenges and Solutions for the #DigitalTransformation and Integration of #MobileSolutions

Companies are increasingly considering mobile solutions and condition monitoring when reorganizing and optimizing their maintenance services. The combination of both approaches creates a new digital business in the field of technical field service.

For the operator, this means greater availability and assistance in reducing maintenance costs. In addition to that, the operator can, in return, expand its portfolio, strengthen customer loyalty and better manage service level agreements. So, it is a scenario that at first glance, for both the manufacturer and the customer, can only be beneficial.

 

But are there any disadvantages or associated risks?

 

The Internet of Things theoretically connects everything: household appliances, industrial plants, IT systems and even people. This trend is driven by increasing networking and the goal of development is to minimize the information gap between the real and virtual worlds. This information gap exists because in the real-world things have a certain state (eg “blower is on”, “reservoir is empty”), but this state is not known to the network. The objective is that the real things make their state information available for further processing on the Internet. There, many companies, especially those responsible for IT, see the specific risks of this development. You need to tackle the challenge: how do I protect the company’s IT systems and corporate data on the network or on mobile devices from being accessed by third parties?

 

Developing the solution and then thinking about security concepts is fatal. The IOT requires essential security, privacy, availability and maintenance concepts. Architectures that are designed for security from the beginning, with strong authentication between devices, services and users, with encryption of data in transfer and storage, with access controls through secure authorization, using proven and verified APIs and microservices are just the ones main features in the design. This assigns tasks to the IT departments, which represent risks that should not be underestimated due to the creation of a new digital business field and which must be mastered by those responsible.

 

The consulting practice shows that the IT managers know this very well and need to intensively work on these topics in the course of a digitization strategy, which requires explicitly provided budgets. Since digital solutions for the technical field service compared to traditional solutions have no real disadvantages, the only question now is: How can the advantages and opportunities of this digital strategy be implemented in such a way that the risks can be controlled? Because the consequence of this cannot be: “Due to the identified risks, we renounce the technology”. Only those who firmly believe that the digital transformation will not succeed in companies, that new digital business models will not succeed or at least know for sure that the competition thinks the same way, can afford it. However, it should be noted that in the wake of new technologies, competition often comes from the outside, often unknown in the market.

 

Mobile solutions for the technical field service

 

Those who don’t want to give up the competition, who want to use the advantages of mobile solutions for the technical field service, secure the chances by a security-oriented architecture of the solution.

With a mobile solution, technicians receive their orders for maintenance or customer service directly on their smartphone, tablet or laptop while on the go. This enables them to access order data in backend systems. A dispatcher in central processing allocates the orders according to availability, location and, finally, qualification. The service employee has the entire object data with the history available on site, can access the central material logistics and send feedback and service reports to the central systems.

By directly integrating the processes in the technical field service into the back-end systems of the company, the entire process scenario can be optimized. With no media disruptions, the mobile connection of the technical field staff leads to higher punctuality, more efficient maintenance and troubleshooting. The improved service quality and additional cost savings pay off through increased customer satisfaction. Also, the cost-effective for the manufacturer as a service provider by the higher productivity of the employees is significant.

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Extension to the complete digital business field

 

The use of enterprise mobility in the technical field service, supplemented by the transmission of status information from systems to the service centre, creates a completely new digital business field. This not only optimizes the deployment scenarios for the technical field staff but also the timing of individual activities. Inspections can be reduced to a minimum. Maintenance work is carried out as soon as possible before a component is actually used up by the equipment signalling that the wear limit will soon be reached. Disruptions and expensive production slowdowns are thus avoided because the system logs in before. All of these factors mean that the savings potential with such optimized processes increases significantly.

 

Integration of equipment and mobile front-ends

 

The integration of a mobile solution can in principle take place in all ERP systems. These are often SAP systems or systems such as Microsoft Dynamics ERP or even proprietary applications. In general, three integration paths are used: Natively via add-on, via web services or via classic interfaces with transfer structures. Often the integration of third-party systems such as image acquisition software, spare parts catalogues, geodata information systems or knowledge management solutions is also possible. This further increases the efficiency of the implementation of the maintenance activities.

The connection between equipment and systems is done via middleware, configurable interface software on IPCs, which converts state information from the plants and forwards and makes it readable to ERP systems.

 

Solutions for operation with SAP

 

The maintenance service applications are offered as on-premise or cloud solutions. Based on the SAP HANA in-memory technology, SAP offers the ideal high-performance, the high-availability technology platform for digital maintenance solutions such as predictive maintenance and service.

The SAP Cloud Platform (SCP) as a “Platform as a Service” represents a development and runtime environment in the cloud. The SCP offers a variety of security functionalities for the integration of SAP and non-SAP solutions, content encryption and Signature, certificate-based authentication, runtime encrypted data storage, data isolation, and persistence, just to name a few.

 

Conclusion

 

The technologies to develop new, competitive, digital businesses for the technical field force have long existed. Safety concerns must be contrasted with safety-oriented concepts. For both, you should consult a security expertise before any unwanted situation.

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