While the world still seems undecided on which terminology to use, the new industrial revolution has started and is already transforming the way we plan our future. Fuelled by the need to optimize the complete production lifecycle, make wiser use of natural resources, respond to fast-paced market changes, and level profitability across the globe, the new concept of Smart Factories was born. We see several research hubs, laboratories, and aggregators in action across the globe, where private, public, and academic entities are collaborating to define the guidelines, best practices, and use cases for the new smart manufacturing world. The topic is still hotly debated, but it has already defined some fundamental building blocks: - Telecommunication – for the estimated 500 connected devices for every person that are expected to exist by 2020, we need fast, secure, and widespread distribution of internet access points and datacenters - Big Data – for decision management platforms to expand at a foreseen CAGR of 60% through 2019, we need enhanced data processing and security algorithms - Security in the most pervasive way – being secure, vigilant, and resilient is the new black in the connected age The Industrial Internet Consortium (IIC) was founded in 2014 to promote the discussion between the leading vendors in IIoT and guide the future generation of intelligent manufacturing. In this presentation, Dr. Richard Soley, IIC Executive Director, and Oliver Winzenried, CEO and founder of Wibu-Systems, share: - an outlook on today’s and tomorrow’s manufacturing notion - the role of IIC in coordinating a vast ecosystem of initiatives - the surge of Smart Factories in the IIC agenda - the security implications of the rise of artificial intelligence in an industrial context - the reasons behind an endpoint security approach - the projects WIBU is engaged in for the development of secure smart factories - the turnkey technologies that are already available for safeguarding and monetizing the intellectual property of intelligent device manufacturers The new generation of embedded system developers is essentially in the same predicament that ISVs of traditional PC applications found themselves in years ago. Let’s openly share the state of the union and forge secure and connected supply chains together. Watch the webinar: https://youtu.be/Q-FNi1DVE5I

1. Dr. Richard Soley
Executive Director, IIC
Oliver Winzenried
CEO WIBU-SYSTEMS AG
Smart Factories Redefine
Security Paradigms
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 1

2. Smart Factories
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 2
A (R)Evolution in Manufacturing

3. Smart Factories
Predictable Productivity
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 3

4. Smart Factories
Predictable Productivity
Predictive Maintenance
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 4

5. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 5

6. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 6

7. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 7

8. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 8

9. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 9

10. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
Custom Marketing
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 10

11. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
Custom Marketing
More Interactivity
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 11

12. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
Custom Marketing
More Interactivity
Higher Safety Standards
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 12

13. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
Custom Marketing
More Interactivity
Higher Safety Standards
Greater Professionalism
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 13

14. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
Custom Marketing
More Interactivity
Higher Safety Standards
Greater Professionalism
Higher Efficiency
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 14

15. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
Custom Marketing
More Interactivity
Higher Safety Standards
Greater Professionalism
Higher Efficiency
Level Playing Field
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 15

16. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
Custom Marketing
More Interactivity
Higher Safety Standards
Greater Professionalism
Higher Efficiency
Level Playing Field
Shorter Time to Market
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 16

17. Smart Factories
Predictable Productivity
Predictive Maintenance
Adaptive Analytics
Lower Operating Costs
Friendly to the Environment
Lower Enterprise Risks
Greater Convenience for the User
Custom Marketing
More Interactivity
Higher Safety Standards
Greater Professionalism
Higher Efficiency
Level Playing Field
Shorter Time to Market
New Business Models
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 17

18. Global Smart Factory industry activities
Industrial Internet – Industrie 4.0 – Made in China 2025
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 18

19. Global Smart Factory industry activities
Industrial Internet – Industrie 4.0 – Made in China 2025
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 19
International
 Industrial Internet
Reference Architecture
 Security Framework
 Journal of Innovation
Germany / Europe
 RAMI 4.0
Reference Architecture
 Industrie 4.0 Component
 R&D Roadmap
China
 Transform China from
manufacturing giant to
manufactoring power
 Grow from big to strong

20. Global Challenges
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 20

21. The Industrial Internet:
Reinventing the Factory Floor
Dr. Richard Mark Soley
Executive Director
9 March 2016

22. “A fundamental new rule for business is that the
Internet changes everything.”
-Bill Gates, 1999
22
Or has it?
March 9, 2016

23. Where We’ve Been
23March 9, 2016

24. Discrete Manufacturing
1980
Programming a 584
Programmable Controller
2424
2016
Programming a 984
Programmable Controller
March 9, 2016

25. No, the Internet Didn’t Change Everything
There is much more to be done:
• Oil & Gas Exploration
• Geological data integration from multiple sensing sources
• Jet engine performance management
• Electric grid transmission management
• Rail & other transportation
• Failure sensing and automatic rerouting of multimodal systems, far more
extensive than JapanRail automatic stop
• Smart homes & smart energy usage
• And on… and on… and on…
• “Internet Thinking” is key to Smart Manufacturing, Smart Connected Products,
and Smart Product Data
25March 9, 2016

26. The Industrial Internet is leading the next economic revolution
26
GDP data extracted from the Futurist 2007
March 9, 2016

27. The Measurable Outcome will be in the Trillions of Dollars
27
GE: $32.3 trillion opportunity representing 46% share of GDP today.
Cisco: Internet of Things (IoT) will increase private sector profits 21% and add $19
trillion to the global economy by 2020
Gartner: IoT product and service suppliers will generate incremental revenue
exceeding $300 billion in 2020.
McKinsey Global Institute: $36 trillion operating costs of key affected industries
could be impacted by IoT
The convergence of Internet of Things, Industrie 4.0, Cyber-Physical Systems
presents an enormous opportunity.
Sources: GE, Cisco, Gartner, McKinseyMarch 9, 2016

28. Yet there are current roadblocks to widespread adoption
28
Connectivity
Technology
Standards
Research Academia
Systems
Integration
Security
Big Data
Government Industries
March 9, 2016

29. The IIC: Things are coming together
Things are coming together.
Standards
Big Data
Government
Technology
Research
Security
Systems Integration
IndustriesConnectivity
Academia
March 9, 2016

30. Industrial Internet Consortium
Mission
To accelerate growth of the Industrial Internet by coordinating
ecosystem initiatives to connect and integrate objects with people,
processes and data using common architectures, interoperability
and open standards that lead to transformational business
outcomes.
Launched in March 2014 by five founding members:
30
Community.
Collaboration.
Convergence.
The IIC is an open, neutral “sandbox” where industry, academia and
government meet to collaborate, innovate and enable.
March 9, 2016

31. Contributing Members
Founders, Contributing Members, & Large Industry
IIC Founder Companies

32. Small Industry

33. Nonprofit, Academic, & Government

34. IIC Core Focus Areas
Activities fall into three main areas that ultimately drive new
opportunities for IIC members:
Testbeds
Innovation to drive new
products, processes,
services
Technology &
Security
Architectural
frameworks, standards
requirements,
interoperability, use
cases, privacy & security
of Big Data
The IIC Ecosystem
Companies joining
together to advance
innovation, ideas,
best practices,
thought leadership
and insights
Innovative products!

35. IIC Track & Trace Testbed
35
Source: Bosch
March 9, 2016

36. What about Standards? And Open Source?
Already plenty of standards at the communications level (e.g., OMG DDS)
Semantic standards are going to be critical in all verticals
IIC is a source for standards requirements & priorities

37. The Future
How will we reduce jet engine
failure & maintenance costs?
3737
How will we save lives
through better patient care?
How will we reduce
passenger fatalities? How will we reduce waste of
natural resources?
How will we minimize
unplanned factory downtime?
Things are coming together.
March 9, 2016

38. For More Information
Dr. Richard Mark Soley
Executive Director
Industrial Internet Consortium
tel: +1-781-444 0404
fax: +1-781-444 0320
email: soley@iiconsortium.org
http://www.iiconsortium.org

39. WIBU-SYSTEMS activities
Projects involved
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 39
Security requirements
Available solutions

40. Smart Factory Projects with Wibu-Systems involved
 SesaOPS: SmartFactoryKL
 Secure Plug & Work: Fraunhofer IOSB
 IUNO: German reference project for security in Industrie 4.0
 Large consortium: 14 companies and 7 research institutes
 Four large use cases (testbeds)
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 40

41. Technology Initiative SmartFactoryKL
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 41
Technology Initiative
SmartFactory KL e.V.
Registered Association
• Human-Machine-Systems
• Automation
German Research Centre for
Artificial Intelligence (DFKI)
Kaiserslautern
Research Department
Innovative Factory Systems
University of Kaiserslautern
Department of Mechanical and
Process Engineering
Institute of
Production Automation (pak)

42. More than 10 years…
Technology Initiative SmartFactoryKL
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 42
Cyber Physical
Systems
2002 2005 2015
Smart Home
Internet
of Things
2011
10 year anniversary
Launching:
DEVELOPING THE VISION FOR INDUSTRIE 4.0
www.SmartFactory.de

43. Technology Initiative SmartFactoryKL
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 43

44. Technology Initiative SmartFactoryKL
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 44
longer product lifecycles
cost
driven
Faster – better – cheaper
Yesterday Today
shorter
development times
product
individualisation
customer
driven
long
delivery times
increasing
salaries
shorter product lifecycles

45. Technology Initiative SmartFactoryKL
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 45
Topics and content:
• Cyber-Physical Systems
• Vertical integration via OPC-UA
• Decentralised process control via RFID
• Semantical product and object memory model
• Resource protection through
context-enabled M2M communication
• Human machine interaction based on augmented reality
Wibu-Systems contribution
• Secure signed data in RFID
• Secure key storage and certificates for OPC-UA
• Security components from sensor to cloud

46. Project Secure Plug & Work
 Plug & Work capability of producing
components using
open standards
 Secure authentication and
configuration of production
components and
trusted communication
 Wibu-Systems contribution
CodeMeter Protection, Licensing,
Security, OPC UA integration
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 46

47. IUNO: Reference Project Security in Industrie 4.0
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 47
 Four big Use Cases
(Testbeds)
 Collect all requirements
and solutions in a toolbox
 Implementation
Transfer to Industry!
Secure Connectivity
Visual security control
room for a production
scenario
Secure Processes
Customer individual
production
Secure Services
Remote access / trusted
partners
Secure Data
Technology marketplace
for process data

48. IUNO: Reference Project Security in Industrie 4.0
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 48

49. How to Implement Security in
Connected Products
Working Principles
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms
WIBU Solutions & Processes
Samples
49

50. Turnkey Solutions for New Requirements
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 50
 Know-how Protection
 data and program code encryption
 Product Protection
 encryption & unclonable keys
 Flexible Licensing
 encryption & biz process integration
 Tamper Protection
 using digital signatures
 Highest Security
 for IP and tamper protection
 Flexible Storage
 for multiple licenses
 Communication Security:
 cyber security -> e.g. OPC UA
 Retrofitting
 brown field

51. Wibu-Systems Technologies and Solutions
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 51
Software Integration
Back Office Integration
Protection Suite: Ax/Ex/Ix-Protector
CodeMeter License Central
 CodeMeter®
 Secure Key Storage (Hardware / Software)
 De-/Encryption (AES, ECC, RSA)
 Flexible License Models
 Software Integration
 Automatic Code Protection / API
 Secure Boot / OPC UA
 Back Office Integration
 Key and Certificate Deployment
 License Deployment
 License Administration

52. Integrate Once – Deliver Many
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 52
Integration into processes
Delivery to the userIntegration into software
Software Software
CodeMeter
Protection Suite
Integrate Once Deliver Many
CodeMeter
License
Central
LL L L
ERP/CRM
e-commerce
CodeMeter
License
Central
Software
License Portal

53. Samples: Banking and Retail, Medical, IoT, IA
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 53
ESI[tronic] 2.0

54. Samples: Banking and Retail, Medical, IoT, IA
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 54

55. Summary: …
 Dr. Richard Soley:
 Industrial Internet of Things (IIoT) technology isn't new; it's the convergence of many
economic & technical factors as applied to industrial systems
 While IIoT is heavily hyped, it is proven in the field in areas as diverse as healthcare,
precision agriculture and flexible manufacturing
 Waiting for standards is a bad idea; organizations have to apply the technology to
their processes now to understand how to best use it
 Oliver Winzenried:
 Security is the enabler for IIoT and Industrial Internet
 Each device needs a tamper proof identity
 IP and know-how in flexible production process and data need to be protected
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 55

56. Deutschland: +49-721-931720
USA: +1-425-7756900
China: +86-21-55661790
http://www.wibu.com
info@wibu.com
Germany: +49-721-931720
USA: +1-425-7756900
China: +86-21-55661790
http://www.wibu.com
info@wibu.com
Thank you!
Questions? Next Steps? Contact us
March 9, 2016 Wibu-Systems Webinar: Smart Factories Redefine Security Paradigms 56