In a compelling discussion with CanadianSME Small Business Magazine, Robert Barton, Chief Technology Officer at Cisco Canada, delved into the findings of Cisco’s State of Industrial Networking Report, highlighting the evolving landscape of industrial operations. Robert pointed out that cybersecurity has become a top priority for organizations, especially within operational technology (OT) environments, where vulnerabilities can significantly impact business continuity. He also emphasized the crucial need for better integration between IT and OT teams to streamline operations and enhance security measures. Looking ahead, Robert discussed the transformative potential of AI in industrial networking, particularly in automating processes, enabling predictive maintenance, and improving decision-making. He encouraged manufacturing companies to invest in AI-ready infrastructure and workforce training to stay competitive in this rapidly changing environment.
Rob Barton, P. Eng, is the Chief Technology Officer of Cisco Canada, and also holds the role of Distinguished Architect. Rob Graduated from the University of British Columbia with a degree in Engineering Physics. Rob is an accomplished author, with titles published on Quality of Service (QoS), Wireless Communications, and the Internet of Things. Additionally, Rob has also co-authored many peer-reviewed academic papers and leads Cisco’s academic research partnership program. Rob holds numerous patents in the areas of wireless communications, network security, cloud networking, IoT, and Machine Learning. His current areas of work include all manner of wireless communications, IT/OT convergence, network automation, and AI/ML in networking systems.
Cisco just released the State of Industrial Networking Report. Can you share the key findings and what they reveal about the current state of industrial networking?
The network has never been more important. Operational technology (OT), and specifically the network supporting industrial operations, has become a key differentiator for organizations globally and in Canada, across a wide range of industries including manufacturing, utilities, and transportation. Cisco’s State of Industrial Networking Report highlights the technology challenges organizations face today, including cybersecurity, IT/OT collaboration, and the adoption of AI, with three key themes rising to the top.
First, securing OT has come to the forefront, requiring a need for solutions tailor-made for industrial environments. Respondents say cybersecurity is the biggest internal barrier to growth and 89% cite cybersecurity compliance as very or extremely important. CIOs are increasingly aware that their largest vulnerabilities are within their operational infrastructure.
Next, it’s increasingly important for IT and OT systems and teams collaborate. A unified approach can lead to simplified operations, enhanced cybersecurity, and faster, more informed decision-making. But despite that, 41% report OT and IT teams working independently.
Finally, organizations are preparing to adopt AI. AI has become the second highest spending priority, which will be used for automating tasks, enhancing network performance, and providing predictive insights.
Why is cybersecurity particularly crucial in manufacturing and OT environments, and what are some common vulnerabilities that companies should be aware of?
In industrial environments, up-time is critical to keep processes, production and the delivery of products moving. Any disruption to the environment can have a catastrophic impact to operations. Imagine a hydro-electricity generation plant grinding to a halt – that could mean energy shortages for people who rely on it.
Respondents all agree that the biggest challenge when running industrial infrastructure is mitigating against cyber threats. The requirements of Industry 4.0, a backlog of legacy systems and assets, an expanding attack surface, and an overstretched workforce are exacerbating the problem and creating vulnerabilities. Earlier this year, we released our 2024 Cybersecurity Readiness Index for Canada which showed just 1% or organizations are fully prepared to defend against today’s threats, so we know collectively businesses need to evolve to be prepared.
What forces are currently impacting the manufacturing sector, and how are they pushing organizations to adapt their IT and OT operations?
Industrial sectors are facing the same forces that businesses worldwide are facing. Respondents say that the top five external forces that are creating the biggest obstacles to growth are a shortage of skilled workers (42%), inflation (40%), cybersecurity risks (37%), supply chain disruption (33%) and the rise of AI (31%). Adopting the right technology solutions will help address some these challenges directly but will also help bring resilience to their organizations as they weather external forces.
How can manufacturing companies benefit from bringing IT and OT operations together, and what are some of the challenges they might face in this integration?
The management of organizations’ IT and OT operations is increasingly overlapping and yet the two functions are still siloed; impacting efficiency and threatening the overall security posture. Aligning potentially siloed functions will be crucial to overcome organizations’ reported technology deployment inefficiencies and cybersecurity risks.
On the benefits side, enhanced cybersecurity can be achieved through a unified approach that better protects data and assets. Improved operational efficiency is another advantage, as streamlined processes and better resource utilization become possible. This integration also facilitates more informed decision-making through integrated data insights. Executive leadership can see the benefits of a unified approach too. In fact, 87% of respondents agreed that there will be significant value in having a unified cybersecurity solution for both IT and OT networks, and this rises to 92% among executive leadership and C-suite.
Doing things differently can bring growing pains. Learning how to work best with new teams with, at times, different priorities, skills and working methodologies can be a challenge. In addition, integrating modern IT solutions with legacy OT systems can be complex. Despite these challenges, the benefits of a unified IT/OT approach make it worthwhile.
With AI predicted to have a significant impact on industrial networking over the next five years, how should manufacturing companies prepare for this technological shift, and what role will AI play in enhancing network performance and decision-making?
AI will play a pivotal role in automation. It will also enable predictive maintenance and management, identifying equipment failures before they occur and thereby reducing downtime. Enhanced security is another advantage as AI can help detect and respond to cyber threats more quickly and accurately. Furthermore, AI can analyze vast amounts of data to provide actionable insights, aiding in better decision-making. By taking these steps, the industrial sector can harness the full potential of AI, ensuring competitiveness and a strong security posture in an increasingly complex landscape.
To get there, investment is crucial. Businesses are starting to act as 42% rate AI as the second greatest spending priority in the next two years. Upgrading existing network infrastructure to support AI applications is another essential step. Training the workforce to effectively leverage AI technologies is equally important, ensuring that employees have the necessary skills to maximize the benefits of AI. Finally, collaboration between IT and OT teams should be reinforced to seamlessly integrate AI solutions.
