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Authored by Professor Ralf W. Seifert with Richard Markoff*
A recent survey by IMD
business school asked supply chain leaders across Europe to select
from a diverse list of 20 hot topics what would be their biggest supply chain
drivers in 2020. They were also asked to rank their company’s readiness to
exploit these drivers.
The top five supply chain drivers for which the
implementation gap was the largest touched on Big Data, Digitalization,
Internet of Things and Artificial Intelligence, all pillars of Industry 4.0
along with automation, 3D printing and other digital innovations. These are
exciting new technologies, but the survey shows that the current reality of
supply chains is that, notable exceptions aside, the majority of companies are
still not ready to use them.
This is the true challenge of Industry 4.0: even as
technological advances continue apace and early adopters reap the benefits of
those technologies that fit their business context, executives at most
companies are bewildered by the array of technologies and capabilities already
available and do not always see an obvious entry point. Even after they have
selected an innovation avenue, the business case is not easy to establish. And
for those companies that do select an Industry 4.0 innovation justify the
economic case and get to implementation, there are still unique barriers to
change that must be overcome. Taken together, this is a three-part problem that
companies looking to innovate through Industry 4.0 need to solve: How will
companies build paths to (1) select, (2) justify and (3) leverage the
functionalities available to them? Each of the challenges is worth a closer
look.
1) Finding the right industry 4.0 fit
It isn’t always clear for supply chain leaders which
Industry 4.0 innovation initiatives to adopt. Industry 4.0 offers a host of
exciting technologies, with a rich landscape of options and vendors attractive
to senior management, but with high complexity risks for those closer to
operations, who see a dizzying array of vendors and options. Adding to the
puzzle, there are ‘internal’ and ‘external’ business
drivers that might dictate which innovations have the greatest potential
benefit and warrant prioritization.
The external market forces that pull supply chains towards
Industry 4.0 solutions could be linked to mass customization, agility in the
face of ever more variable demand, using Big Data to understand and predict
consumer behaviour, and cloud collaboration networks with suppliers and
customers.
There are prominent examples that show the potential of
Industry 4.0. One is the use of 3D printing to
produce customised hearing aids within hours, leading the way to wider use
of 3D printing in medical devices such as titanium
knees or spinal prosthetics. The potential is high enough that the FDA just
released guidance that establishes the path to regulatory
approval for 3D printed medical devices. FMCG companies are now using
predictive analytics fed by big data to understand how consumers may react to
new product launches in order to better
size demand plans.
These are exciting opportunities that extend beyond supply
chain and must be part of an overall definition of business strategy led by the
CEO, wherein supply chain is one of many important actors in the conversation
but that Industry 4.0 helps make possible. For example, investing in
cloud-based order management tools that make it possible to leverage stores,
warehouses and even third-party stocks to optimally fulfil ecommerce orders is
a task for supply chains to solve. Even decisions on the configuration of the
physical network are now dependent on the ecommerce order fulfilment strategy.
However, the decision to use stores to fulfil ecommerce orders, either with
stock or via click-and-collect, is clearly part of an overall business
strategy. The business strategy must position the priorities of ecommerce,
store traffic and order lead time, and weigh staff training and complexity.
Supply chains have a voice in the discussion to be sure, and the discussion must
be had before rushing to implementation.
Going further upstream, deploying automation to increase the
agility of line changeovers makes more sense if the business strategy is to
have a larger product portfolio with smaller volumes and more promotional activity.
The industrial strategy is a function of the business strategy, not the other
way around. For example, Adidas
is innovating in the shoe market by deploying 3D printing to support a
strategy of offering customised insoles and limited edition models. Their
competitor Nike has announced an automation program that is
remaking their geographical production footprint and bringing
increased agility to their supply chain.
In terms of internal business drivers, automation,
transparent S&OP planning suites, connected production sensors, predictive
maintenance and shop floor augmented reality can have immediate benefits for
safety, quality and efficiency. These solutions are interesting because of
internal performance ambitions, rather than external market influences, and they
are more independent of the overall business strategy.
They may seem to lie purely within the domain of supply
chain and operations, but in fact are often multidisciplinary. Even something
like demand sensing, using Big Data and predictive analytics to ‘sense’
short-term trends in consumer demand, is best done with the collaboration of
commercial and category management teams. Without their support, accessing,
understanding and leveraging the data will be difficult for the supply chain to
achieve.
Once the challenge of identifying and prioritising the most
compelling possibilities of Industry 4.0 has been addressed, the next step is
justifying the economic business case.
2) Calculating a business case
Adopting an Industry 4.0 technology, be it in response to
internal or external business drivers, requires a uniquely challenging economic
justification, since it goes beyond straightforward return on investment
scenarios.
This is partly because many Industry 4.0 technologies have
not yet been widely deployed, and there may be reluctance to be the first
adopter. New technology solutions are often met with skepticism, which can
raise the bar for the return on investment as there are few demonstrable
business cases available for comparison. When the proposed technology is truly
cutting-edge, the risks of failure are higher and the economic case is held up
to greater scrutiny. Not every company has leaders ready to champion and
sponsor innovation in the face of uncertain or less tangible outcomes.
One FMCG company we spoke to was an early adopter of AGVs –
automated guided vehicles that replace driver-piloted forklifts. The pilot
project showed a best-case payback of five years – just long enough for the
project to be halted in its tracks for lack of a compelling return. However,
the head of operations pushed forward, seeing the less tangible but critical
value that investing in AGVs would represent. This would send a clear message
that the company placed importance on safety, cleanliness and innovation. Today
AGVs are widely deployed worldwide and their contribution is not questioned.
How many companies have similarly visionary leaders ready to take risks on
Industry 4.0? Indeed, most of the Industry 4.0 success stories we have
encountered reached implementation through management’s conviction that their
company had to be an innovation leader rather than an ironclad economic
justification.
When Industry 4.0 solutions are due to external forces, this
adds a layer of complexity. Supply chain managers are more used to justifying
investments that provide efficiency or are required to meet a stated, projected
demand. When the investments are part of a shift in business strategy, both the
top and bottom lines in the economic model are moving, clouding the question
even further. This is an opportunity for supply chain managers. They may now
have a voice in shaping business strategy, rather than being uniquely a
function of it.
An essential element to consider is scalability. A business
case is more compelling when it is possible to pilot a new technology in a
small, controlled environment before scaling up company-wide. Where possible,
this can limit the size of the investment, but might discourage innovations
that require high upfront fixed costs regardless of scale, such as a collaboration
platform.
3) Overcoming barriers to implementation
Any technology deployment will inevitably encounter barriers
to implementation. There are the usual hurdles of employee engagement,
skepticism and fear of being unable to adapt that cannot be ignored. But
Industry 4.0 entails other dimensions of implementation challenges.
The potential lack of a clear business case might undermine
the motivation of key implementation actors, especially if the transverse
nature of the transformation undermines their economic incentives (our research
on this will be published in a forthcoming article in The European Business
Review). For example, factory managers purely motivated around cost and
efficiency may resist Industry 4.0 initiatives that promote connectivity,
transparency and agility.
With so many companies looking to implement their Industry
4.0 strategy, finding qualified talent is becoming a problem. Similarly, the
skill levels of current employees might not be adequate, raising the required
training effort.
From a technology perspective, increased connectivity and
cloud projects mean that issues like cybersecurity and data ownership must be
addressed. Business continuity plans may no longer be suitable with the
emergence of new risk points and overall system threats.
What’s next?
Industry 4.0 advocates would do well to focus not only on
the technology but also on the managerial implications. The technology is
exciting and will undoubtedly change operations in the years to come. But for
companies that are looking to participate in and benefit from Industry 4.0 must
prioritise projects that are consistent with an external business strategy,
identify what the true benefits are, and understand how ready they are to make
the change happen.
*Ralf Seifert is Professor of
Operations Management at IMD. He directs IMD’s Digital Supply Chain Management program,
which addresses both traditional supply chain strategy and implementation
issues as well as digitalization trends and new technologies.
Richard Markoff is a supply chain researcher, consultant, coach and lecturer. He has worked in supply chain for L’Oréal for 22 years, in Canada, the US and France, spanning the entire value chain from manufacturing to customer collaboration.
Article originally published at https://www.imd.org/publications/articles/three-key-questions-you-will-not-escape-for-industry-4.0/.
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The National Security Agency (NSA) and the Cybersecurity and Infrastructure Security Agency (CISA) have teamed up to release a comprehensive guide aimed at bolstering cloud security measures for organisations. Titled “Top Ten Cloud Security Mitigation Strategies,” this initiative aims to equip cloud customers with essential practices to enhance the security of their data as they migrate to cloud environments.
In an era where digital transformation is accelerating, the migration of data and operations to cloud platforms has become commonplace. However, this transition brings with it a myriad of security concerns, as evidenced by the increasing frequency of cyberattacks targeting cloud infrastructure. Recognising the critical need to address these challenges, the NSA and CISA have collaborated to compile a set of ten cybersecurity information sheets (CSIs), each focusing on a different aspect of cloud security.
One of the primary themes emphasised in the report is the importance of upholding the cloud-shared responsibility model. This model delineates the responsibilities between cloud service providers and their customers regarding security measures. By understanding and adhering to this model, organisations can ensure that they are taking appropriate steps to safeguard their data within the cloud environment.
Another key area highlighted in the report is the implementation of secure identity and access management practices. Proper management of user identities and access controls is essential for preventing unauthorised access to sensitive data stored in the cloud. Through robust authentication mechanisms and access policies, organisations can fortify their defences against potential security breaches.
In addition, the report emphasises the critical importance of implementing secure key management practices, robust encryption mechanisms, and effective network segmentation strategies within cloud environments. These measures play a pivotal role in protecting data both when it is stored and when it is being transferred, thereby reducing the likelihood of data breaches and unauthorised interception.
Furthermore, the report highlights the significance of securing data throughout its entire lifecycle in the cloud. This includes implementing stringent security measures for data storage, processing, transmission, and disposal. By doing so, organisations can effectively protect their data against a wide range of evolving threats.
Another critical aspect covered in the report is the defence of continuous integration/continuous delivery (CI/CD) environments. As organisations increasingly adopt DevOps practices and automate their software development processes, securing CI/CD pipelines becomes paramount to prevent the introduction of vulnerabilities and malicious code into production environments.
Moreover, the report emphasises the enforcement of secure automated deployment practices through infrastructure as code (IaC). By treating infrastructure as code and automating deployment processes, organisations can ensure consistency, repeatability, and security in their cloud environments.
The complexities introduced by hybrid cloud and multi-cloud environments are also addressed in the report. As organisations adopt hybrid and multi-cloud strategies to meet their diverse needs, they must navigate the unique security challenges posed by these environments effectively.
Additionally, the report highlights the risks associated with managed service providers (MSPs) in cloud environments. While MSPs offer valuable services and expertise, organisations must be vigilant in vetting and managing their relationships with MSPs to mitigate potential security risks.
The report stresses the importance of managing cloud logs for effective threat hunting. By aggregating and analysing logs generated by cloud services, organisations can proactively identify and respond to security incidents before they escalate.
The “Top Ten Cloud Security Mitigation Strategies” initiative by the NSA and CISA provides invaluable guidance to organisations seeking to enhance the security of their data in cloud environments. The NSA and CISA envision these strategies as foundational advice that every cloud customer should follow to mitigate the risks associated with cloud services. By implementing these strategies effectively, organisations anywhere can mitigate risks and bolster their defences against cyber threats in an increasingly digital landscape nowadays.
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In the era of digital transformation, the hybrid cloud has become a crucial driver for organisations striving to navigate and thrive in a rapidly evolving environment. The adoption of advanced technologies such as big data analytics, machine learning, and artificial intelligence empowers businesses to leverage innovation and enhance their decision-making processes. This paradigm shift underscores the importance of hybrid cloud in enabling organisations to adapt to change, drive growth, and remain competitive in today’s dynamic business landscape.
Executives surveyed by HPE support the idea that a hybrid cloud strategy represents the optimal blend of technologies for achieving their company’s goals. According to their findings, 91% of organisations are currently implementing this operational model to some extent. Among these organisations, 33% utilise a combination of private and public clouds, while 31% leverage a mix of private and public clouds along with on-premises infrastructure.
Global enterprise leaders emphasise that a hybrid cloud approach offers unparalleled flexibility and control, allowing organisations to tailor their operations to suit their specific needs. This approach also facilitates seamless integration, enabling businesses to develop digital products and services with agility and efficiently move data across different environments. These capabilities are instrumental in driving business growth, creating new revenue streams, and facilitating the integration of acquired companies by transitioning their existing legacy on-premises systems into existing cloud components.
Similarly, Singaporean enterprises and organisations have demonstrated a solid commitment to technological advancement by widely adopting cloud strategies. Recognising the importance of flexibility and scalability in today’s digital era, they have embraced hybrid cloud solutions to seamlessly integrate on-premises infrastructure with public and private cloud services, enabling them to optimise their operations.
The strategic objectives driving Singapore’s embrace of hybrid cloud, including enhancing operational efficiency, facilitating digital transformation, and capitalising on emerging opportunities, highlight the importance of a well-defined plan for successful implementation. Without this strategic approach, organisations may find themselves with a fragmented and inefficient hybrid data and cloud environment, failing to realise the full benefits of hybrid cloud adoption.
To avoid this scenario, organisations must adopt a more strategic approach to hybrid cloud and simplify data management. This involves shifting from a hybrid cloud implementation by accident to one by design, thereby enhancing their cloud operating model and maximising the benefits of hybrid cloud adoption.
Furthermore, security remains a paramount concern in hybrid cloud environments. Organisations and enterprises must assess their risk tolerance, as opting for an exclusive private cloud might seem like the safest choice. However, despite the common belief that private clouds offer the highest level of security, the advantages of a hybrid cloud far outweigh this assumption. It is crucial to understand that the hybrid model is not inherently insecure simply because private clouds are often perceived as more secure.
Hybrid cloud affords organisations the flexibility to implement security measures across various layers, including legacy systems, on-premise private clouds, and cloud-based data. This approach enables organisations to implement stricter security measures, outsource to specialised providers, establish secure connections through tunnels, and reduce the time spent on monitoring security subsystems and compliance risks.
Virtual Private Networks (VPNs) can mitigate data compromise risks when transmitting data between legacy systems, on-premises infrastructure, and the cloud. Additionally, a hybrid cloud setup introduces redundancy, enabling organisations to implement backup plans and minimise downtime. Overall, the hybrid cloud model helps reduce risk and allows organisations to concentrate on their core business activities.
The OpenGov Breakfast Insight on 8 March 2024 at Equarius Hotel Singapore has delved into the critical role of hybrid cloud in modern business operations, highlighting its ability to provide flexibility, scalability, and enhanced security. With a focus on practical insights and real-world examples, the event provided delegates with valuable information on how to implement and manage hybrid cloud solutions effectively.
Opening Remarks
According to Mohit Sagar, the CEO and Editor-in-Chief at OpenGov Asia, businesses increasingly turn to hybrid cloud solutions for operational optimisation and competitiveness in the digital age. This architecture combines on-premises infrastructure with public and private cloud services, offering flexibility and scalability and allowing strategic workload, application, and data transfers across environments for enhanced performance and cost-effectiveness.
“Singapore has made significant strides in digital transformation by integrating on-premises infrastructure with public and private cloud services,” Mohit acknowledges. “This strategic approach offers unparalleled flexibility, scalability, and innovation, positioning Singapore at the forefront of technological advancement.”
Adopting a hybrid cloud is both a technical change and a strategic imperative for sustainable growth in the digital era, as exemplified by Singapore’s significant strides in digital transformation.
Businesses in Singapore maximise performance, manage workloads effectively, and balance security and compliance complexities with a hybrid cloud strategy. The hybrid model enables organisations to balance security, compliance, and innovation, supporting confident digital transformation.
“In Singapore, 67% of IT teams used a combination of private and public clouds, multiple public clouds, or on-premises and hosted data centres,” Mohit reveals. “Even with data management and complexity difficulties, more than two-thirds of Singaporean firms utilise a combination of private and public cloud and on-premises and hosted data centres.”
Elaborating on the advantages of a hybrid cloud, highlighting its ability to leverage the strengths of both on-premises and cloud systems, Mohit notes that global enterprise leaders believe that a hybrid cloud gives you the flexibility to operate and better control that suits the organisation better operate and better control that suits the organisation best.
The hybrid cloud allows seamless integration for developing digital products and services with agility, enabling data movement across various environments to foster business growth and generate new revenue streams. This is particularly relevant in scenarios where a company is acquired and it is necessary to migrate its legacy on-premises systems to one of the established cloud components.
Hybrid cloud adoption is seen as a tactical advantage, offering a comprehensive solution that combines flexibility, speed, and cost efficiency for organisations undergoing digital transformation. However, despite these benefits, organisations must also address several challenges.
A major challenge is the complexity of operating a hybrid environment that mixes on-premises infrastructure with public and private cloud services. Integration and interoperability challenges may arise, requiring careful design and implementation.
Another significant concern is the issue of security, which requires strong measures to balance accessibility and data protection. Organisations must establish comprehensive security plans to safeguard data, applications, and communication channels.
Additionally, managing the specialised skills, tools, and complexities of data transport and storage in a hybrid environment may increase costs.
Successfully addressing these challenges is crucial for organisations to realise the full benefits of hybrid cloud adoption.
Nevertheless, Mohit recognises that the hybrid cloud is a transformative force, far more than just a technological tool. It is a catalyst for change, a compass directing enterprises through new landscapes.
“With this in mind let’s create new paths together,” Mohit exhorts the delegates, “Empowered by the revolutionary potential of hybrid cloud solutions, we have the opportunity to shape a future characterised by boundless creativity and possibilities.”
Technology Insight
Dilipkumar B. Khandelwal, Chief Technology Officer for SG/SEA at Hewlett Packard Enterprise, provided insights into the advantages and obstacles associated with hybrid cloud utilisation. He also offered his viewpoint on cloud adoption strategies, effective implementation of hybrid approaches, and methods for tackling governance issues.
Dilipkumar recognises the critical importance of a hybrid cloud in modern business operations. This approach combines the best of both worlds, allowing organisations to leverage the scalability and flexibility of cloud services while maintaining control over sensitive data and applications. By embracing a hybrid cloud, businesses can adapt quickly to changing market conditions, innovate with agility, and drive growth in a rapidly evolving digital landscape.
With a hybrid cloud, businesses can run sensitive workloads in their private cloud and transfer data between suitable public cloud data centres, adapting to regulatory changes and evolving requirements.
Business continuity, crucial for regulatory compliance, is improved with hybrid cloud support for application, data, and disaster recovery tasks, protecting against system failures, security issues, and physical disasters.
For example, a company could duplicate critical workload data from a local application to a public cloud, ensuring availability or recovery in case of data loss. In a more complex scenario, a business might scale or migrate a busy application from its private cloud to the public cloud to manage increased user traffic, preventing performance issues and improving user experience.
Enterprise applications and data resources inherently carry security, performance, and reliability risks. Hybrid clouds provide companies with the flexibility and control to strategically position applications and data according to changing business and technological needs.
Building on this idea, with a hybrid cloud, enterprises can choose the location of applications and data and determine the most effective way to allocate resources and services to achieve optimal outcomes for the business and its application users.
Dilipkumar acknowledged that deploying hybrid clouds can be challenging due to configuration and security complexities. IT staff must manage authentication and security measures for private and public cloud workloads and data, ensuring consistency and complementarity across both realms.
“It is crucial to ensure that security settings are consistent and complementary across both realms, as any change in one cloud may need to be reflected in the other,” Dilipkumar cautions.
In tackling these obstacles, Dilipkumar says that HPE provides unmatched simplicity in deploying hybrid cloud solutions. Referred to as a unified edge-to-cloud platform, HPE offers a streamlined and accessible method for building and overseeing hybrid cloud ecosystems.
It integrates critical features such as flexibility, scalability, security, visibility, and ease of management, allowing organisations to deploy traditional or cloud-native workloads across their entire IT ecosystem.
“In the dynamic digital landscape, the hybrid cloud is pivotal for businesses, offering agility and control,” concludes Dilipkumar. “By simplifying the adoption and management of hybrid cloud strategies, HPE empowers companies to leverage the latest technologies effectively and stay ahead. We support a hybrid-centric strategy.”
In Conversation With
A hybrid cloud is a sophisticated cloud computing system that integrates public and private cloud services to manage a wide range of applications effectively. This environment provides organisations with the flexibility to place their most sensitive workloads in an on-premise cloud (private cloud) while leveraging third-party cloud providers for less critical resources, thus allowing them to harness the advantages of both approaches.
For enterprises seeking greater control and security over their data while also requiring a cost-effective way to scale operations to meet fluctuating demands and support long-term growth, a hybrid cloud emerges as the optimal choice.
Sander Veraar, Vice President of Strategic Services at StarHub, underscored the critical role of cost management in companies contemplating cloud migration. While choosing a private cloud involves substantial fixed costs for owning and managing internal data centres, public cloud services offer a more adaptable cost structure with operational and variable expenses.
“A hybrid cloud environment offers companies the flexibility to store their sensitive business-critical data on their on-site servers while utilising the public cloud for less critical data and applications,” explained Sander.
This setup allows businesses to optimise their infrastructure costs by scaling resources according to demand. During periods of increased demand, companies can avoid significant capital expenditures by paying for the resources they actually use. Conversely, when demand decreases, costs are reduced accordingly.
Sander believes that organisations gain significant resource advantages with a hybrid cloud compared to traditional physical data centres. The hybrid cloud’s ability to efficiently allocate, deploy, and scale resources enables companies to respond to spikes in demand quickly. When demand exceeds the local data centre’s capacity, a company must have the capability to scale up immediately to meet the increase, a capability that a hybrid cloud environment provides effectively.
Sander points out that a swift response not only prevents missing potential customers but also protects the organisation’s brand reputation. A hybrid cloud setup allows companies to scale up applications to the public cloud to meet demand, ensuring extra capacity and scalability.
Organisations can proactively manage evolving security challenges in a hybrid cloud environment by tackling the following critical issues and adopting recommended strategies:
- Visibility Challenges: The integration of public and private clouds can introduce complexity and elevate security risks.
- Insecure Data Transmission: Data transfer between public and private clouds poses security risks, such as eavesdropping or cyberattacks. Robust encryption, including hardware security modules and cryptographic tools, is crucial to secure data in transit.
- Compliance Challenges: Hybrid cloud complexity can challenge compliance efforts. To maintain compliance, prioritise it from the start, conduct continuous security assessments, and follow data security guidelines. Encryption and adherence to standards can also help.
- Supply Chain Vulnerabilities: Small vendors in the supply chain pose major security risks. Attackers may exploit these vulnerabilities to access larger targets. To mitigate this, use strong encryption and strict access control to secure data transfers and reduce hybrid cloud breach risks.
By effectively addressing these challenges and implementing best practices such as robust encryption, continuous security risk assessment, and stringent compliance adherence, organisations can enhance their security posture in a hybrid cloud environment and proactively mitigate emerging security concerns.
Dilipkumar B. Khandelwal, who serves as a Chief Technology Officer SG/SEA, Hewlett Packard Enterprise, explained that Hybrid cloud solutions combine on-premises and public cloud environments, enabling seamless collaboration and data integration across diverse sources. They enhance intelligence through:
Data Warehouse Integration: Combining data from AWS Redshift, Google BigQuery, and Azure Blob Storage into a centralised data warehouse for quicker insights and decision-making.
IoT Connectivity: Connecting IoT devices to a centralised data repository for improved operational efficiency and insights for predictive maintenance.
Machine Learning Model Training: Increasing accuracy and relevance by feeding machine learning models with real-time data from various sources.
Security Analytics: Strengthening security monitoring and incident detection by collecting and analysing log files and event data from multiple sources.
Customer Experience Enrichment: Improving personalisation and satisfaction by creating a comprehensive customer profile from various touchpoints.
These examples showcase how hybrid cloud solutions streamline data integration, leading to actionable insights, increased efficiency, and enhanced intelligence. They promote collaboration and innovation by connecting data sources and breaking down organisational silos.
In managing threat detection and continuous monitoring in a hybrid cloud environment, various strategies are used to mitigate security risks and promptly identify potential breaches. These include:
- Real-Time Threat Detection: Using advanced cloud security monitoring solutions to continuously scan logs and events across the hybrid environment for anomalous activities in near-real-time.
- Multi-Layer Security Approach: Implementing a combination of native cloud monitoring tools, third-party solutions, and best practices to ensure comprehensive coverage of the hybrid cloud infrastructure.
- Cloud Security Information and Event Management (SIEM): Employing an SIEM tool to collect and analyse log data from both physical and virtual servers, aiding in the identification of suspicious behaviour and reducing false positives.
Additionally, employing machine learning algorithms and AI-powered threat detection engines can significantly enhance the identification of sophisticated threats. Collaborating with other organisations and security communities to share threat intelligence can improve defence mechanisms and reduce blind spots.
Applying a zero-trust model, where no entity is implicitly trusted, can help limit the impact of compromised credentials and reduce the likelihood of successful attacks.
“These approaches, coupled with staying abreast of the latest developments in cloud security, enable organisations to defend against the unique challenges of hybrid cloud architectures proactively,” Dilipkumar says.
Closing Remarks
Dilipkumar expressed gratitude to the attendees of the OpenGov Breakfast Insight, acknowledging their dedication to sharing knowledge and fostering professional connections in the digital era.
He views these gatherings not simply as conversations, but as opportunities to exchange valuable experiences and insights essential for navigating the complexities of today’s digital landscape. Dilipkumar is optimistic that these interactions will enable participants to leverage their newfound knowledge in their respective workplaces, promoting innovation and facilitating growth.
Dilipkumar reiterated the benefits of hybrid cloud solutions, which blend public and private cloud services to enhance operational efficiency and flexibility while safeguarding sensitive data. He highlighted their importance in digital transformations to maintain competitiveness and resilience in evolving business environments.
In such circumstances, it becomes evident that businesses can generate significant value for themselves and society at large by embracing technology wisely. He emphasised the necessity of continuous learning and adapting to technological advancements, acknowledging the dynamic nature of the technology sector and the ongoing need for education and evolution.
Furthermore, Dilipkumar encouraged continued collaboration and knowledge sharing among participants to foster a robust business ecosystem. He is convinced that success in the digital era hinges on collective efforts and the sharing of insights and best practices. By working together, businesses can create an innovative and sustainable environment that benefits all stakeholders.
Dilipkumar expressed optimism about the delegates’ potential to drive technological innovation and address challenges in the digital era. He urged them to maintain their commitment to advancing technology and assisting companies and customers in navigating the evolving digital landscape.
“Given your experience and dedication, I am confident that you will continue to play a pivotal role in shaping the technology industry and fostering business sustainability,” Dilipkumar concluded.
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The Data Innovation and Governance Institute (DIGI), under the Digital Government Development Agency (Public Organisation) or DGA, has organised the International Open Data Day 2024, a significant event aimed at promoting the use of data systems and highlighting the importance of open data in advancing towards sustainable open government. This forum emphasised the critical role that open data plays in driving technological advancements and digital transformations towards sustainable governance.
Open data serves as a powerful catalyst for positive technological change, offering insights into inequalities and disparities in income, wealth, and access to government services. It also helps measure the impact of development initiatives, establish benchmarks, and improve the efficiency and effectiveness of public services. By promoting data systems, the event aimed to underscore the transformative power of open data in advancing sustainable development through digital means.
Puchpong Nodthaisong, Secretary-General of the National Digital Economy and Society Commission (NDESC), previously highlighted the importance of the open data platform in improving the utilisation of government data accounts. The platform ensures that critical national development issues are adequately analysed and decided upon.
Based on the OpenGov report, Puchpong Nodthaisong emphasised, “data is a valuable asset in the country’s growth process, facilitating data analysis and decision-making in various disciplines, including scenario analysis for project planning, monitoring, and evaluation under the country’s economic and social thrust.”
At the forum, Dr Puangpetch Chunlaid, Minister attached to the Prime Minister’s Office, played a central role, presiding over the ceremony and delivering a keynote address that underscored the importance of information disclosure in the transition to a digital government. Dr Chunlaid emphasised the pivotal role of data in modern governance, stating that it is crucial for making informed policy decisions, enhancing operational efficiency and driving innovation. He highlighted how data-driven approaches can lead to the development of more effective economic and social policies, ultimately fostering strong and sustainable growth.
Mrs Irada Lueangwilai, Deputy Director and Acting Director of the Digital Government Development Agency reiterated the DGA’s commitment to driving digital government development in Thailand. The agency aims to enhance government efficiency through digital technology, develop online services for the public and various sectors, and facilitate information exchange between government agencies, all essential aspects of a digital government.
International Open Data Day has highlighted the importance of information disclosure. In Thailand, the event, hosted by the DGA under the theme “Data-Driven for Sustainability,” emphasised data’s role in sustainable development. The event included activities organised by the DGA, demonstrating Thailand’s commitment to leveraging data for sustainable development and open government.
DGA has been committed to spurring the development of open data in Thailand. It has been proven since 2015, when the DGA’s establishment of the open government data centre, data.go.th, marked a significant achievement in promoting open government policy and strengthening public participation. With over 11,000 datasets released by government agencies, government data has been transformed into a valuable public resource, driving innovations that benefit the nation.
DGA continues to provide information on using open data in the public sector through DIGI’s social media page, Data Innovation and Governance Institute, showcasing the government’s dedication to harnessing data’s power for sustainable development and open government through digital technologies.
The overarching goal of this gathering was to cultivate a culture of data-driven decision-making, equipping individuals with the capabilities to extract profound insights from data. These insights are pivotal in informing decision-making processes and conducting in-depth analyses across various domains.
Moreover, these forums catalyse robust collaborations within a data community, extending beyond national boundaries. They facilitate the exchange of information at an international level, thereby contributing to the harmonisation and integration of diverse datasets. This effort results in tangible use cases that benefit the public and contribute to the further expansion of the economy.
In the future, DGA will consistently collaborate with other stakeholders, including academia, civil society, and the private sector, to expand the reach and impact of open data initiatives. By building partnerships and sharing best practices, DGA seeks to create a more vibrant and sustainable open data ecosystem in Thailand.
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The Ministry of Public Security is spearheading a groundbreaking initiative with the introduction of a draft proposal for Vietnam’s Data Law. This pivotal legislation addresses the pressing need for a centralised national data centre, marking a significant stride towards cohesive data management infrastructure.
Currently, several ministries grapple with inadequate infrastructure to support vital information technology systems. This deficiency results in disjointed databases plagued by issues of standardisation and uniformity. Moreover, existing data centres suffer from insufficient investment, non-compliance with standards, and lax security measures.
To tackle these challenges head-on, the proposed regulations aim to establish a national data centre. This centre will function as a centralised repository, fostering seamless connectivity among disparate databases and information systems.
The Ministry of Public Security is actively working towards the completion and operation of the inaugural national data centre in Hoa Lac (Hanoi) by the end of 2025. This aligns with the timelines set forth in Resolution No. 175/NQ-CP and the effective date of the Data Law on January 1, 2026.
The impact policy assessment report by the Ministry of Public Security underscores the benefits of the national data centre. It anticipates reduced investment costs for the state in digital transformation infrastructure and resources.
This initiative promises streamlined management and expertise for nationwide data activities, spanning collection, storage, management, exploitation, use, and sharing. Additionally, it ensures cost savings in administering information systems outside the state database of political and socio-political organisations.
Organisations, businesses, and individuals are encouraged to register and utilise services from the government-provided national data centre infrastructure and cloud computing services. This not only optimises investment resources but also mitigates concerns surrounding data leakage.
The Ministry of Public Security forecasts significant cost savings for ministries, departments, and localities in data collection and cleaning related to the population. Leveraging information from the national population database is projected to yield substantial savings.
Furthermore, entities currently leasing data infrastructure space at a considerable cost stand to benefit from transitioning to the national data centre. This shift ensures top-tier security and safety while enabling the state to reduce expenses associated with renting premises, operational costs, and business profits.
The Ministry of Public Security actively seeks input from agencies, organisations, and individuals for the draft Data Law. In recent years, Vietnam has demonstrated its commitment to establishing a robust legal framework for data management. Despite numerous laws regulating databases, the current framework is deemed incomplete, lacking unified standards and efficient deployment mechanisms.
The proposed Data Law aims to bridge this gap by addressing crucial areas such as data building, development, processing, and management. It also encompasses regulations on the national consolidated database, the national data centre, and associated products and services.
Ultimately, the Data Law seeks to bolster Vietnam’s digital government, digital economy, and digital society. By ensuring security, safety, and effective support for the Fourth Industrial Revolution, this legislation heralds a new era of data management in Vietnam. The Ministry suggests aligning other relevant laws with the provisions of the Data Law to foster a cohesive legal landscape conducive to digital advancement.
As OpenGov Asia reported, Vietnam’s digitalisation journey is propelled by the recently approved National Data Strategy, envisioning ambitious technological advancements by 2030. Central to this strategy is transitioning all administrative procedures online, bolstering efficiency in government services.
To support this, Vietnam plans to interconnect national and regional data centres and high-performance computing hubs, enabling seamless data sharing nationwide. Intending to digitalise the entire national database, Vietnam aims to establish an e-government framework, promoting accessibility and transparency in governance.
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In a bid to harness the power of big data for social and economic progress, the Thai government, led by Mr Prasert Chandraruangthong, Minister of Digital Economy and Society (DE), has unveiled the Big Data Institute’s (BDI) new role in shaping the future through data. The initiative, titled “Power the Future with Data – The Next Chapter of BDI,” aims to harness the power of big data and AI to drive economic and societal growth in the digital era.
Thailand has long recognised the importance of data in its growth trajectory. The Digital Economy Promotion Agency (Depa), operating under the Ministry of Digital Economy and Society (DES), has actively promoted the use of big data for national progress, including during the tenure of the GBDi. The previous institute successfully streamlined over 100 projects undertaken by 67 state agencies and was crucial in developing platforms to support these initiatives.
At the meeting, key figures attended, including Professor Wisit Wisitsaratha, Permanent Secretary of the Ministry of Digital Affairs, Mr Suthikiat Veerakijpanich, Advisor to the Minister, Mr Wanlop Rujirakorn, Secretary to the Minister, and Associate Professor Dr Theeranee Ajalakul, Director of the Big Data Institute, highlighting the institute’s collaborative efforts with government agencies.
In his address, Mr Prasert highlighted the pivotal role of the Big Data Institute in leveraging big data to propel the country forward. He emphasised the institute’s role in bridging the gap between government agencies, enabling them to utilise various information sources for maximum benefit. This approach, he noted, is crucial for accelerating national development and enhancing the quality of life for citizens in a sustainable manner.
“Big data is critical because it provides valuable insights, patterns, and trends from vast amounts of structured and unstructured data. By leveraging big data, organisations and societies can enhance decision-making, optimise operations, and drive innovation across various sectors,” Mr Prasert explained.
Further, Mr Prasert underscored the importance of the Thai Large Language Model (ThaiLLM) project, led by the Big Data Institute, as a key component of Thailand’s artificial intelligence infrastructure. The project aligns with the Ministry of DE’s focus on leveraging data technology and AI to enhance Thailand’s digital and innovation competitiveness on a global scale.
According to a previous OpenGov Asia report, developing the Thai Large Language Model (Thai LLM) is a significant step towards enhancing Thailand’s natural language processing capabilities. Large language models, like the Thai LLM, can process and generate human language, enabling a wide range of applications such as machine translation, text summarisation, and chatbots in the Thai language.
Following the discussion on the ThaiLLM project, Professor Phiphisit Wisit Wisitsaratha, Permanent Secretary of the Ministry of Digital Economy and Society, delivered a lecture on the policy direction of using data technology and AI to drive Thailand forward. He emphasised the ministry’s commitment to promoting public benefit and readiness to adapt to modern challenges, particularly in big data technology.
Associate Professor Dr Theeranee Ajalakul, Director of the Big Data Institute, highlighted BDI’s role in promoting the use of analytical data for decision-making and service delivery. The institute serves as a hub for connecting and analysing data across various sectors, fostering an ecosystem that supports data entrepreneurs and meets the demands of the Thai industrial sector.
An important aspect of BDI’s work is its focus on developing a skilled workforce in big data. The institute has trained over 100 new-generation information professionals, equipping them with the skills to drive Thailand’s competitive advantage and contribute to sustainable economic growth.
In this context, the efforts of the Big Data Institute underscore Thailand’s commitment to becoming a Data-Driven Nation. It is believed that by leveraging data and AI technologies, Thailand aims to achieve concrete national reforms to propel the country towards stable, sustainable, and transparent economic development.
“Thailand is laying the foundation for a more competitive digital economy. This could lead to significant improvements in efficiency, innovation, and overall quality of life for its citizens in the future,” Mr Prasert concluded.
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In New Zealand, the emphasis on cloud-based infrastructure is substantial, with a plethora of initiatives and partnerships aimed at propelling digital transformation and enriching cloud services for businesses and organisations. This strategic shift towards cloud-based infrastructure is being harnessed across diverse sectors to bolster operational efficiency, fortify cybersecurity measures, and augment accessibility to digital resources.
As organisations in New Zealand continue to modernise their systems and migrate to cloud-based infrastructure, cybersecurity emerges as a paramount concern. One of the critical aspects of cybersecurity in this context is ensuring the protection of data stored and transmitted through cloud services.
The recent advisory issued by the UK’s National Cyber Security Centre (NCSC UK) concerning APT29, underscores cyber threats’ dynamic and ever-evolving landscape. This advisory serves as a poignant reminder of the criticality of remaining vigilant, informed, and prepared in the face of increasingly sophisticated cyber adversaries.
NCSC UK and international partners have assessed APT29 as a cyber espionage group. This attribution is supported by agencies such as the US National Security Agency (NSA), the US Cybersecurity and Infrastructure Security Agency (CISA), the US Cyber National Mission Force (CNMF), the Federal Bureau of Investigation (FBI), the Australian Signals Directorate’s Australian Cyber Security Centre (ASD’s ACSC), the Canadian Centre for Cyber Security (CCCS), and NCSC NZ. These organisations agree with the details in the advisory, emphasising the need for a coordinated international response to cyber threats.
One of the critical aspects highlighted in the advisory is the adaptation of APT29 to target organisations transitioning to cloud-based infrastructure. This highlights the importance of understanding threat actors’ specific tactics, techniques, and procedures (TTPs) in the cloud environment. One tactic observed is the exploitation of service and dormant accounts.
APT29 has used brute force and password-spraying techniques to access these accounts, which are often highly privileged and used to manage applications and services. Organisations can mitigate this risk by enforcing strong password policies, implementing multi-factor authentication (MFA), and regularly auditing and deactivating dormant accounts.
Another tactic employed by APT29 is the use of cloud-based token authentication. Threat actors can bypass traditional authentication methods by using tokens to access accounts without needing a password.
Organisations can protect against this by adjusting token validity times and implementing strong MFA policies. Enrolling new devices on the cloud is another avenue exploited by APT29. By registering their device as a new device on the cloud tenant, threat actors can gain unauthorised access to the network. Organisations can defend against this by configuring network policies to validate devices before granting access.
To evade detection, APT29 has also utilised residential proxies to hide their true IP addresses. This underscores the importance of comprehensive logging and monitoring to detect and respond to suspicious activity. Implementing network defences that consider a variety of information sources can help mitigate this risk.
The guidance in the advisory serves as a reminder of the importance of a strong cybersecurity posture, mainly as organisations increasingly rely on cloud infrastructure. Remaining informed about the latest cybersecurity trends and threats is imperative for organisations to identify and address vulnerabilities in their systems proactively. This knowledge empowers them to implement necessary security measures and mitigations effectively.
Moreover, collaboration with cybersecurity experts and sharing information with other organisations can significantly enhance overall cybersecurity posture, as collective insights and experiences can inform better defence strategies. By staying vigilant and implementing the recommended mitigations, organisations can substantially improve their ability to protect their networks and data from cyber threats. This approach is crucial in the face of evolving cyber risks and threats.
It is critical that New Zealand, like any other country, continuously adapts and improves its cybersecurity practices to protect its data and systems in the digital age effectively. Only through ongoing efforts and collaboration can organisations and countries effectively mitigate cyber risks and ensure a secure digital environment.
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In response to the rapidly evolving landscape of data collection and analysis driven by advances in artificial intelligence, the U.S. National Science Foundation (NSF) and the U.S. Department of Energy (DOE) have joined forces to establish a Research Coordination Network (RCN) dedicated to advancing privacy research and the development, deployment, and scaling of privacy-enhancing technologies (PETs).
This initiative, which fulfils a mandate from the “Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” aims to advance the recommendations in the National Strategy to Advance Privacy-Preserving Data Sharing and Analytics. The goal is to move towards a data ecosystem where the beneficial power of data can be unlocked while protecting privacy.
“This crucial investment represents our commitment to advancing the foundations of responsible AI and privacy-enhancing technologies,” said Dilma DaSilva, who serves as an assistant director for NSF’s Computer and Information Science and Engineering Directorate. “This effort supports research and development that enables individuals and society to benefit equitably from the value derived from privacy-preserving data sharing and analytics.”
Asmeret Asefaw Berhe, director of DOE’s Office of Science, emphasised the increasing importance of privacy-enhancing technologies in today’s data-driven landscape. “Privacy-enhancing technologies allow us to safeguard sensitive datasets and information needed to advance a broad research, development, and demonstration portfolio,” she said. “This Research Coordination Network will help us move toward the shared goal of establishing new data safety and security standards that will allow us to continue to develop the innovations and scientific discoveries we need to achieve our clean energy and industrial goals.”
Through this initiative, RCN also brings together experts from academia, industry, and government to support the development, deployment, and scaling of PETs. These crucial technologies enable data analysis while safeguarding individual privacy and addressing concerns arising from the increasing sophistication of data analysis techniques.
One of the primary goals of the RCN is to address the barriers to the widespread adoption of PETs, including regulatory considerations. By convening multidisciplinary, cross-sector, and international expert groups, the RCN aims to understand the risks of data sharing and analytics for marginalised and vulnerable groups. Central to the RCN’s mission is examining various mechanisms for deploying PETs, including research, technological innovations, regulatory measures, and standards and certifications. The team will prioritise use cases for PETs that support privacy-preserving machine learning and those essential for federal agencies to ensure the equitable use of AI.
With support from NSF and DOE, the RCN will drive meaningful progress in developing and deploying PETs, laying the foundation for a more privacy-conscious approach to data sharing and analytics in an era defined by rapid technological advancement.
The RCN’s work is particularly timely as society grapples with the challenges and opportunities presented by the proliferation of AI and data-driven technologies. The ability to harness the power of data for societal benefit while respecting privacy and individual rights is a key focus of the RCN. “By fostering collaboration and innovation in privacy-enhancing technologies, the RCN aims to shape a future where data can be shared and analysed responsibly, unlocking new insights and capabilities while protecting privacy and promoting equity,” Asmeret said.
Moreover, the RCN’s efforts will also contribute to discussions on broader data governance and privacy regulation. As governments and organisations worldwide seek to establish frameworks for responsible AI and data use, the insights and recommendations generated by the RCN will be invaluable in shaping policy and best practices.
Establishing the RCN marks a significant milestone in advancing privacy research and developing PETs in the United States. The RCN is well-positioned to drive substantial progress in this critical area by convening experts from various disciplines and sectors. In an era of rapid technological advancement, society faces challenges and opportunities in the digital age. The work of the RCN will play a crucial role in shaping a future where data can be utilised responsibly and ethically, ultimately benefiting all individuals and communities.