IoT and ICS – What Happens Next?

Here is what happens next – you need to plan and execute the following steps on your assets:

#1 Invest in data management, analytics and artificial intelligence (AI)

In addition to implementing the right technologies and plugging any gaps, organizations need analytics and AI capabilities that are mature enough to deliver on the ambitions of their IoT initiatives, ranging from descriptive to prescriptive analytics:

1. Descriptive analytics to gain a granular view of the specific process that is being measured and monitored
2. Prescriptive analytics to build a feedback loop into the process monitoring in order to optimize, assist, or partly automate that process
3. Predictive analytics and AI to a) learn from past patterns and events, b) anticipate the potential failures or issues that might impact the top or bottom line and c) mitigate and manage those risks

#2 Address IoT/ICS security concerns

A number of steps are critical to addressing security concerns:

1. IoT platforms and architecture need to be built for security from the ground-up with a well-defined and validated security architecture. Organizations often fail to prevent security shortfalls at the conceptualization and design stage. Bruce Schneier, a renowned security analyst, says: “Security is an afterthought in product design and not something that’s taken seriously enough. Companies are rewarded for features, price, and time-to-market. It’s easy to slough off security because it’s not immediately obvious that you’ve done so.”
2. Your organization must define, maintain and follow best practices for data management and security controls. This is your first line of defense against potential risks, particularly from emerging IoT solution vendors and start-ups. The security of your asset and its IoT platform is vital because your data transmission and operations run through it. Organizations should deploy automated intelligence and security procedures, such as automatically updating patches when they become available. Automation reduces vulnerability by reducing incident response time.
3. Security solutions must be tailored to your specific needs and the architecture supporting your IoT/ICS. Guido Jouret, CDO of ABB – you have at least one of their products on your asset – says: “Even though security is paramount in the world of IoT, there is one attribute that trumps even that: availability. By this, I mean that industrial machines can never be taken down to install patches or to fix a possible breach. Cybersecurity systems for the industrial IoT need to factor in the non-stop mission criticality of processes and continuous availability.”

Why do you care?

IoT/ICS benefits are compelling, with many proven use cases showing the significant value that energy sector organizations can realize. However, finding the sweet spot for the IoT will require more than just deep-seated understanding of the technology. You must have a coherent IoT strategy and vision, carefully chosen and committed leaders, and a strong focus on high-value use cases for each of your assets. IoT/ICS is NOT one size fits all. Each asset is different by design and evolution. IoT/ICS can deliver significant value and a sharp competitive edge. It’s an edge that those who are struggling to get beyond experimentation will find increasingly difficult to match.

What can you do about it?

Begin now to put in place a plan for IoT/ICS. Incorporate your management of change (MOC) process, software configuration management, and cybersecurity plans. Don’t wait until you get shut down because someone brought in a WiFi-connected smart coffee pot.

As you can see from the figure below, with well-planned IoT implementations, you can positively impact your revenue while reducing cost. Royal Dutch Shell realized a $1 million return on an $87,000 investment in a remote IoT-based asset monitoring and maintenance solution. The company installed sensors in 80 oil fields in West Africa, which produce upwards of 600,000 barrels of oil per day. The oil wells are in difficult terrain, and the sensors made remote monitoring of output and performance possible. Royal Dutch Shell reported immediate cost savings from reduced site visits for equipment maintenance and reduced downtime.

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