THIRD INDUSTRIAL REVOLUTION

Mikko Särelä Postdoctoral researcher

Aalto University Department for Communications and Networking

mikko.sarela@aalto.fi

MIKKO SÄRELÄ

!•Internet and cyber security reseacher !

•Post-doc, Aalto University, School of Electrical Engineering !

•Vice member of Helsinki City Planning Board

HISTORICAL CONTEXT

Democracy, nationionalism, conscription, printing press, railways, machine gun...

F I R S T I N D U S T R I A L R E V O L U T I O N

S E C O N D I N D U S T R I A L R E V O L U T I O NFordism, combustion engine, cars, planes, tanks, radio, television, total war,…

A E R I A L B O M B I N G S

N U C L E A R B O M B

HOWEVER

GROWTH DID NOT LAST

T H E G R E AT S TA G N AT I O N

A VIEW TO THE HISTORY

INDUSTRIAL REVOLUTION

S1.-> Machine replaces

human manipulation skills!Some external energy:

wind, water, steam

INDUSTRIAL REVOLUTION

S2.-> Muscle work

replaced with general energy: !

electricity, combustion engine

THIRD INDUSTRIAL REVOLUTION

NOW

T H I R D I N D U S T R I A L R E V O L U T I O NRise of the computer intelligence

HUMAN MIND REPLACED WITH MACHINE

PERFECT STORM OF

THREE INVENTIONS

ALAN TURING

Computer

J. C. R. LICKLIDERIntergalactic computer

network

HAROLD STEPHEN

BLACKControl systems

THE THREE INNOVATIONS

TOGETHER

NEW INDUSTRIAL REVOLUTION

What can you do today that is not influenced by digital systems?

Directly?

Indirectly?

Everything is digitalAnd soon everything will be networked

How about security?

The Change

Humans and mechanical systems replaced

Digital networked systems

Everything digital, everything networked everything reachable

Human - digital difference

Humans• Human processes are

distributed by necessity

• Good at cognitive tasks and flexible in new situations

• Likely to react to wrong information that is obviously wrong

• Susceptible to social engineering attacks, but effects are limited

• Humans are reasonably good at recognizing the unusual

Digital system• Excel in following instructions

exactly

• Impossible to fool directly

• Unauthorized access can be made difficult

• If access is gained, attacker may change the process itself

• Digital systems are hard, inflexible, and fragile

• When security breaks, it breaks completely

EXAMPLES

Logistics

Currently perishables come to stores via central distribution

points !

Digitalization enables a distributed delivery system of a

small unit size !

Example: Mumbai Dabbawalas

Traffic control

• Self-driving cars

• Humans will be forbidden from driving on public streets and roads

• Benefits: reduced accidents, highway capacity, << cost, etc.

• Potential risk?

SOCIAL PROCESSES

INDUSTRIAL AUTOMATION

E-VOTING

MOBILITY AS A SERVICE

HEALTHCARE

AND SO MUCH MORE

COMMON TRAITS?

Future of employment: How many jobs can be

replaced by automation?

!Carl Benedikt Frey and !

Michael A. Osborne!September 17, 2013

Immediate impact

Impact within hours

Impact within days

Importance and Interdependence of our Critical Infrastructure

Transportation and logistics

Communications and information

Electricity

Government services

Health services

Emergency services

Banking and finances

Food delivery

Water

Industrial automation systems control infrastructure

Control requires communications

Food production

Other energy Communications require electricity

Electric grid requires communications for control

National defense

Industry

ICT CAN KILL

“SCHOOLBOY HACKS INTO CITY'S TRAM

SYSTEM”

“CIA ADMITS CYBERATTACKS

BLACKED OUT CITIES”

“BOEING 747 ENGINES CAN BE

CONTROLLED VIA PASSENGER

ENTERTAINMENT SYSTEM

“BLOWING UP GENERATORS

REMOTELY”

“POPULAR SURVEILLANCE

CAMERAS OPEN TO HACKERS,

RESEARCHER SAYS”

“10K REASONS TO WORRY ABOUT

CRITICAL INFRASTRUCTURE”

IN 2013

WE ANALYSED FINNISH

INDUSTRIAL AND BUILDING-

AUTOMATION

INTERNET

WE FOUND

Q1/2013! Q4/2013! Difference!

Targets!

Online!Ports open!

2915!

1968!

1410!

4695!

3281!

2337!

+ 61 %!

+ 67 %!

+ 66 %!

Q4 / 2013!2915 TARGETS

1968 1602+239 ONLINE 1410 1204 PORTS OPEN

REMOTE ACCESS – AND SURVEILLANCE

(WEB, TELNET, YM.)

BUILDING AUTOMATION (HEATING, WATER SUPPLY, DOOR LOCKS,

ETC…)

MANUFACTURING PLANTSPOWER PLANTS

WATER TREATMENT PLANTS FACTORY CONTROL SYSTEMS

GAS STATIONSPRISONS

HOSPITALSHOMES, OFFICES, STORES, …

Siemens Simatic (S7, HMI, NET) Schneider TSX

Schneider Modicom Quantum Schneider clearScadaPocket CMD (telnet)

EDW-100 Digi One SP and Realport

Moxa Nport 5210/5110xwed 500

…

OPENLY REACHABLE FROM THE INTERNT

HS 21.3.2013

41,1!

4,76!

4,39!

4,15!

3,13!

2,79!

2,71!

2,48!

1,91!

0! 5! 10! 15! 20! 25! 30! 35! 40! 45!

US!

ES!

CA!

DE!

SE!

GB!

JP!

FI!

FR!

Percentage per country !(out of 132775 targets in SHODAN)!

0!

0,1!

0,2!

0,3!

0,4!

0,5!

0,6!

0,7!

FI! SE! ES! CA! US! FR! GB! DE! JP!

ICS devices per capita (/1000 inhabitants)!