AON RELEASES 2019 CYBER SECURITY RISK REPORT: "WHAT'S NOW AND WHAT'S NEXT"
Aon plc the leading global professional services firm providing a broad range of risk, retirement and health solutions, released its 2019 Cyber Security Risk Report today. The report, which details the greatest cyber security threats and challenges organizations are currently facing, discusses that as companies continue to use technology to speed up the transfer of information, game-changing business opportunities are created, as well as increased cyber risk.
"In 2018 we witnessed that a proactive approach to cyber preparation and planning paid off for the companies that invested in it, and in 2019, we anticipate the need for advanced planning will only further accelerate," said J. Hogg, CEO of Cyber Solutions at Aon. "Leaders must work to better insulate their companies and their processes, while simultaneously identifying the ways they can benefit from the opportunities offered through technology and digital transformation."
Hogg continued: "Our 2019 report also shows that organizations must recognize the need to share threat intelligence across not only their own network but with others as well. While it may seem counterintuitive when thinking about cyber security, collaboration within and across enterprises and industries can keep private data of companies and individuals alike safer. Working together can result in improved efforts to hunt bad actors, while also raising the bar and making all parties more prepared for the inevitable day when a disruption does happen."
The "What's Now and What's Next" report focuses on eight specific risk areas that companies may face in 2019. The risks illustrate how, as organizations transition to a digital-first approach across all transactions, the attack surface of global business expands rapidly and sometimes in unexpected ways. In other words, thanks to the rapid enhancements and constant changes in technology, the number of touch points that cyber criminals can access within a business is growing exponentially.
Highlights from the report include:
Technology – While technology has revolutionized the way organizations today conduct business, broader and wider-spread use of technology also brings vulnerabilities. From publishing to automotive, industries are facing new, evolving services and business models. These new opportunities however, bring with them a radically different set of risks, which organizations will need to anticipate and manage as they continue the digital transformation process.
Supply Chain – Two prevailing supply chain trends will heighten cyber risks dramatically in the coming year: one is the rapid expansion of operational data exposed to cyber adversaries, from mobile and edge devices like the Internet of Things (IoT); and the other trend is companies' growing reliance on third-party—and even fourth-party—vendors and service providers. Both trends present attackers with new openings into supply chains, and require board-level, forward-looking risk management in order to sustain reliable and viable business operations.
IoT – IoT devices are everywhere, and every device in a workplace now presents a potential security risk. Many companies don't securely manage or even inventory all IoT devices that touch their business, which is already resulting in breaches. As time goes on, the number of IoT endpoints will increase dramatically, facilitated by the current worldwide rollouts of cellular IoT and the forthcoming transition to 5G.
Effective organizational inventory and monitoring process implementation will be critical for companies in the coming year and beyond.
Business Operations – Connectivity to the Internet improves operational tasks dramatically, but increased connectivity also leads to new security vulnerabilities. The attack surface expands greatly as connectivity increases, making it easier for attackers to move laterally across an entire network. Further, operational shortcuts or ineffective backup processes can make the impact of an attack on business operations even more significant. Organizations need to be better aware of, and prepared for, the cyber impact of increased connectivity.
Employees – Employees remain one of the most common causes of breaches. Yet employees likely do not even realize the true threat they pose to an entire organization's cyber security. As technology continues to impact every job function, from the CEO to the entry-level intern, it is imperative for organizations to establish a comprehensive approach to mitigate insider risks, including strong data governance, communicating cyber security policies throughout the organization, and implementing effective access and data-protection controls.
Mergers & Acquisitions (M&A) – Projections anticipate that M&A deal value will top $4 trillion in 2018, which would be the highest in four years. The conundrum this poses to companies acquiring other businesses is that while they may have a flawless approach to cyber security enterprise risk, there is no guarantee that their M&A target has the same approach in place. Dealmakers must weave specific cyber security strategies into their larger M&A plans if they want to ensure seamless transitions in the future.
Regulatory – Increased regulation, laws, rules and standards related to cyber are designed to protect and insulate businesses and their customers. The pace of cyber regulation enforcement increased in 2018, setting the stage for heightened compliance risk in 2019. Regulation and compliance, however, cannot become the sole focus. Firms must balance both new regulations and evolving cyber threats, which will require vigilance on all sides.
Board of Directors – Cyber security oversight continues to be a point of emphasis for board directors and officers, but recent history has seen an expanding personal risk raising the stakes. Boards must continue to expand their focus and set a strong tone across the company, not only for actions taken after a cyber incident, but also proactive preparation and planning.
Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
To learn more about the solutions offered by Aon, please also visit www.aon.com
Up to 80% savings in CapEx (Engineering Costs and Time Optimisation); and a whopping 85% savings in OpEx (Energy Consumption) reported, among others.
Report is based on a study of 230 customer projects over the last 5 years, producing deep, quantifiable benefits.
Schneider Electric, the global leader in digital transformation of energy management and automation, this month released the Global Digital Transformation Benefits Report 2019, presenting concrete evidence of the power of digitisation across the spectrum of global industry, commerce and the public sector. This evidence takes the form of deep, quantifiable, business benefits derived from a repository of 230 customer projects Schneider Electric completed in the last five years across 41 countries - all employing the company's architecture and platform, EcoStruxure.
The goal for this report is to provide readers with a useful and realistic benchmark on digital transformation's potential in energy management and automation. At the core of this report are 12 key business benefits of digital transformation. These benefits are divided into three categories, each essential to effective marketplace competition: capital expenditure (CapEx), operational expenditure (OpEx), as well as sustainability, speed, and performance. The Report focuses on four key sectors of the economy - buildings, data centers, industry, and infrastructure - all undergoing transformations that will fundamentally change the way people will live, work, and play.
Significant CapEx and OpEx savings The evidence presented by the Report puts to rest concerns in the market that digital transformation is an expensive Capital Expenditure proposition involving new systems and difficult integration into existing processes. The customer projects studied in the Report demonstrate the opposite. The study shows that digitisation of engineering processes, for instance, can save businesses and organisations an average of 35% in CapEx costs and time optimisation. Further, commissioning costs of new systems and assets can be reduced by an average of 29%.
The study also reveals that digitisation, by harnessing IoT, can result in significant savings in Operational Expenditure - leading to step change improvements in efficiency, reliability, safety, and sustainability. Businesses and organisations report an average savings of 24% in energy consumption, as a result of digitisation.
In Industrial applications, digital transformation allows businesses to do more with less - more yield with less energy, fewer materials, and fewer labor hours. Increased productivity, up to 50%, results from energy management and automation efficiencies across the value chain, from IoT-enabled tracking to automated production lines.
"Digital transformation is the only way of delivering consistency and efficiency across a company. Technologies such as IoT, AI and big data analytics are making companies more efficient and innovative, boosting their competitive advantage."
- Jean-Pascal Tricoire, Chairman and CEO Schneider Electric.
Decades of Experience in Digital Transformation Schneider Electric has started its digital transformation journey years ago. In 2009, Schneider Electric launched EcoStruxure™, its IoT-enabled, plug and play, open, interoperable, architecture and platform.
Now boosted for cloud and digital services, EcoStruxure™ delivers enhanced value around safety, reliability, efficiency, sustainability, and connectivity. EcoStruxure™ leverages advancements in IoT, mobility, sensing, cloud, analytics and cybersecurity to deliver innovation at every level, from connected products; edge control; and apps, analytics & services. EcoStruxure™ has been deployed in 480,000+ sites, with the support of 20,000+ system integrators and developers, connecting more than 1.6 million assets under management through 40+ digital services. Building on EcoStruxure™, 45% of Schneider Electric sales in 2017 were IoT-related.
A larger story emerges from this report about the power of digital transformation in energy management and automation: when businesses digitise both energy management and automation, the two work in concert to drive even greater, unprecedented, value.
"Digital transformation is the only way of delivering consistency and efficiency across a company. Technologies such as the Internet of things (IoT), artificial intelligence and big data analytics are making companies more efficient and innovative, boosting their competitive advantage," said Jean-Pascal Tricoire, Chairman and CEO of Schneider Electric. "Our technologies, built on EcoStruxure™, harness the power of digitisation, enabling our customers to become more efficient, safe, reliable, connected and sustainable - leaders in the New Digital Economy."
Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructure and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management - Medium Voltage, Low Voltage and Secure Power, and in Automation Systems. We provide integrated efficiency solutions, combining energy, automation and software. In our global Ecosystem, we collaborate with the largest Partner, Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency.
- Global survey of C-suite leaders offers insights to guide business leaders in managing Industry 4.0 change and transformation
- Societal impact and talent development top list of leader priorities
- Social Supers; Talent Champions; Data-driven Decisives and Disruption Drivers
With the Fourth Industrial Revolution (Industry 4.0) re-shaping how the world lives and works, global leaders are facing the pressures of preparing their businesses and their workforces for this new era. Arising from this shift to Industry 4.0 are defined leadership traits that have been uncovered in Deloitte's second annual Readiness Report, Success Personified in the Fourth Industrial Revolution, which offers insight into the characteristics that set apart the most effective leaders and successful organizations.
This year's survey of more than 2,000 C-suite executives across 19 countries, found that executives genuinely want to improve the world and they have a clearer grasp of the skills challenge ahead. However, organizational roadblocks appear to be limiting the development of effective Industry 4.0 strategies and they continue to shy away from bold technology investments that will drive innovation and disruption. In two critical areas – societal impact and talent development – CXO attitudes changed dramatically from 2017, indicating leaders are becoming more realistic about what it takes to succeed in Industry 4.0.
"Last year, even though leaders were just beginning to understand how Industry 4.0 would transform business and society, they expressed confidence in their preparedness," said Punit Renjen, Deloitte Global CEO. "Yet their actions demonstrated a significant mismatch between their confidence to address these changes and their actual readiness to address them. Today, leaders are more realistic about what it will take to succeed, and they appear particularly focused on societal impact and workforce development as two critical components of their future success."
Success personified in the Fourth Industrial Revolution: The four leadership personas for an era of change -
While there is no one recipe for success in how to deal with rapid industrial transformation, it can be helpful to understand how certain leaders are approaching this everchanging environment. Organizations with leaders who embody the characteristics of the Industry 4.0 personas - commitment to do good; defined, data-driven decision making; bold, longer-term vision of technology; and aggressive about workforce development - are poised to survive and thrive.
Deloitte research explores the types of leaders that are taking effective action, where they are making the most progress, and what sets the most successful leaders apart. These leadership personas - Social Supers, Data-driven Decisives, Disruption Drivers, and the Talent Champions - can serve as models for leaders globally as they tackle the challenges associated with 4IR transformation.
Weighing the Value of Purpose? Societal Impact Pays Off.
This year's survey revealed that societal impact (34 percent) is the most important factor business leaders use to gauge success - totaling that of financial performance (17 percent) and employee satisfaction (17 percent) combined. Additionally, more than half of global executives surveyed (53 percent) noted their societal impact efforts resulted in new revenue streams - proving purpose and profit can coexist in Industry 4.0.
The "Social Supers" "Social Supers" are leaders who consider societal initiatives fundamental to their businesses. They have demonstrated success in "doing well by doing good" by generating new revenue streams through socially or environmentally conscious products or services; and believe that these initiatives, more often than not, contribute to profitability. "Social Supers" are more confident in their ability to handle the workforce challenges of Industry 4.0 - they are 12 percent more likely to cite that their workforce composition is prepared for digital transformation and show far greater willingness to train workers (54 percent vs. 37 percent).
In Industry 4.0, Strategy is Left Behind A third of global leaders cited lack of leadership vision as the top challenge their organizations face in adapting business strategies to meet the needs of tomorrow. Strategy also falters when it comes to implementing new technologies, as leaders reported concerns over too many technology choices and difficulty keeping pace with the rate of change. Only 29 percent of executives believe their organizations have clearly defined decision-making processes, so it's no surprise executives are struggling to keep up.
The "Data-Driven Decisives" Strategic obstacles, such as organizational silos, can complicate decision-making processes and hamper innovation. "Data-Driven Decisives," however, are overcoming these challenges through a methodical, data-focused approach and are bolder in their decisions. These leaders are confident in comparison to other leaders, with sixty-two percent strongly agreeing that they are prepared to lead their organizations in capitalizing on the opportunities associated with Industry 4.0 - almost twice as many as other leaders (32 percent) surveyed.
Technology Bringing a Wave of Disruption? Not So Fast. Despite the unquestionable economic and societal potential of Industry 4.0, many organizations opt to maintain the status quo with respect to their technology investments, leaving themselves at risk. Twice as many leaders said they're more likely to invest in Industry 4.0 technologies to protect themselves from disruption as are looking to disrupt other industries or the marketplace (67 percent versus 33 percent). So, what is responsible for this defensive approach? Issues such as being too focused on short-term results, having too many technology choices, and a lack of understanding of the technologies rose to the top as barriers to investment.
The "Disruption Drivers" Leaders known as the "Disruption Drivers" understand that investment in new innovations is required for growth; they invest in technologies with a concerted focus on upending their markets. These bold decisions have paid off - their technology investments have achieved or exceeded their intended business outcomes. "Disruption Drivers" are more likely to say they feel ready to lead in the Industry 4.0 era (45 percent versus 32 percent) and are more assured that their organizations are prepared to capitalize on the opportunities associated with Industry 4.0.
Building the skills for Industry 4.0. Hire or train? Global leaders appear to understand the new skills required by Industry 4.0 jobs, however, the fear of technology and automation isn't necessarily causing executives to increase efforts to train their workforce. While 55 percent of leaders highlighted a significant mismatch between current skill sets and those needed in the future, 25 percent still prefer hiring new employees over retraining their current workforces. Furthermore, 57 percent believe the education system is inadequately preparing incoming workers - up from 35 percent in 2017. If the education system isn't providing business with able professionals, it will fall to business leaders to either hire for the skills they need or retrain their existing workers.
The "Talent Champions" The "Talent Champions" know what skill sets their companies need - and they believe they currently have the correct workforce composition. These executives are aggressively preparing their companies for digital transformation, and embrace their responsibilities to train their employees for the future of work (51 percent versus 41 percent for all other respondents). Talent Champions also are more likely to invest in technologies to disrupt competitors (42 percent versus 32 percent).
Leading in the Fourth Industrial Revolution "Our research has uncovered four distinct types of leaders succeeding in Industry 4.0. These leaders are achieving greater revenue growth than their counterparts, in part, because they have conquered at least one, and sometimes more, of the dimensions required for success. For other leaders seeking to prepare for the challenges of this new era, these personas offer insights that can be used to shape their own strategies for success," added Renjen.
Methodology: This research is based on a survey of 2,042 global executives conducted by Forbes Insights in June-August 2018. Survey respondents represented 19 countries from the Americas, Asia and Europe, and came from all major industry sectors. All survey respondents were C-level executives, including CEOs/presidents, COOs, CFOs, CMOs, CIOs and CTOs. All executives represented organizations with revenue of $1 billion or more, with half (50.1 percent) coming from organizations with more than $5 billion in revenue. Additionally, Forbes Insights and Deloitte Global conducted one-on-one interviews with global industry leaders and academics.
About the Deloitte Societal Impact Commitment
Addressing the complex challenges society faces today has become a mandate for business, and one that requires a new mindset for action.
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