- In 2024, 50% of OT systems in North Asia will be connected to enterprise IT systems, up from 38% in 2023.
- Of all organizations surveyed, only 13% are at an advanced level of readiness to deal with IT/OT security issues, and 60% are at a basic level.
- 73% of organizations say they plan to outsource all or part of their IT/OT security operations to a third party.
HONG KONG, April 18, 2024 /PRNewswire/ -- Telstra International, a global arm of Telstra, a leading telecommunications and technology company, has revealed that Telstra International has released an Industry 4.0 security assurance: Challenges and opportunities for converging IT-OT According to the study, the low level of operational technology (OT) and information technology (IT) security maturity in North Asia may expose companies that are rapidly adopting Fourth Industrial Revolution (4IR) technologies to significant risks.
Telstra International commissioned technology research firm Omdia to assess the maturity, benefits and opportunities of OT and IT convergence in North Asia. The study, which surveyed 250 enterprise and technology leaders in Chinese mainland, Hong Kong, Japan, South Korea and Taiwan, found that only 13 percent had a high level of readiness to address IT/OT security issues, and the majority (60 percent) had only a basic level.
As they move towards Industry 4.0*, digital and data-centric businesses are adopting technologies such as the Internet of Things (IoT), artificial intelligence, and big data to accelerate their digital transformation. This is driving the convergence of previously separate OT and IT functions to streamline and enable data flow for industrial operations in industries such as manufacturing, healthcare, retail/wholesale, transportation, logistics, and shipping.
With 85% of enterprises expecting to benefit from IT/OT convergence, they have accelerated the pace of system convergence. In the coming year, 50% of OT systems will be connected to enterprise IT systems, up from 38% last year. In North Asia, 76% of companies have digitized some of their existing manual processes.
Paul Abfalter, Telstra's Head of North Asia, said: "As enterprises rapidly enter the era of new technologies with digitalization at their core, they face increased cyber security risks due to the accelerated convergence of IT and OT systems. The rush to converge previously disconnected systems not only exposes serious operational silos, but also reveals a significant lack of ability to mitigate emerging cybersecurity risks. For organizations that want to converge IT/OT systems, they must find the right talent, partners, skills, and technology to succeed safely. "
unique IT/OT security challengesWhile the convergence of IT and OT offers many benefits, there are some significant hurdles that enterprises encounter in the process of system convergence. One of them is the need for expertise that can address both IT and OT security issues, as threats to IT systems can now directly impact OT systems. According to research by Telstra in partnership with Omdia, 88% of organizations have managed security incidents that directly impact OT production environments, and 74% of attacks that impact critical infrastructure operations can be traced back to corporate IT systems.
Interestingly, only 26% of attacks are currently related to OT systems. These systems are generally not networked and therefore pose a greater risk from a cybersecurity perspective. As a result of this new risk vector, 73% of organizations say they plan to outsource all or part of their IT/OT security operations to a third party.
Adam Etherington, Senior Principal Analyst for Digital Enterprise Services at Omdia, said: "Hackers are becoming more sophisticated in their attack tactics when it comes to accessing unencrypted or unsecured IoT devices to steal business-sensitive data or by moving laterally between devices to gain access to other systems. This can cause disruption to operations and cause significant financial losses to businesses. "
"Today's increased cyber risk is leading to spending on network tools and services, which can further increase complexity and risk," Etherington said. Addressing the challenges of IT/OT security requires a unified interface to visualize the new converged infrastructure of the Industry 4.0 enterprise, but gaining visibility is only the first step in identifying, responding to, and preventing such threats. An overall strategy, industry framework, and expert partners will be critical to addressing this critical challenge. "
Maturity levels in North Asia are below parCommon IT/OT convergence activities include unifying production infrastructure, sensors, and physical systems across data centers, digital platforms, and networks. According to IDC's report, much of this activity stems from IoT deployments, with Chinese mainland and South Korea being the most popular markets for IoT in Asia today. Chinese mainland, Hong Kong and Singapore are the three fastest-growing markets.
Less than half (44%) of North Asian companies surveyed have reached an "operational" or "advanced" maturity level for ensuring OT security. The study also highlights that South Korea and Hong Kong are relatively more mature in IT/OT cybersecurity compared to the rest of North Asia, with 52% and 45% of enterprises reaching "operational" or "advanced" maturity levels, respectively (see chart below).
However, the similarities between different regions highlight the overall lack of preparedness, which is also something that cybersecurity managers must address. From an industry perspective, manufacturing is the least prepared of all industries, with only 38% of businesses in the region reporting that they have reached an "operational" or "advanced" maturity level. This is not surprising, as many manufacturing companies have historically placed a strong emphasis on manual labor and manual processes, resulting in a lack of business convergence and a slower adoption of digital technologies compared to other industries. What was previously a cautious approach to the adoption of new technologies has become a major driver of accelerated Industry 4.0 adoption and industry transformation.
For more details, please click here to download the study
* The core concept of Industry 4.0 is to strategically integrate advanced technologies and new business models in harmony with legacy systems to optimize the scale, resilience and efficiency of critical infrastructure areas to achieve unprecedented breakthroughs.
About Telstra InternationalTelstra is a leading telecommunications and technology company. We have a proud history in Australia, but we also have many years of experience in the global business. Today, we employ more than 3,200 people in more than 30 countries outside of Australia, serving thousands of businesses, government agencies, operators and OTT customers.
We provide enterprises with innovative technology solutions including data and IP networks, as well as network application services such as managed networks, unified communications, cloud, industrial solutions, integrated software applications and services.
These services are underpinned by our submarine cable network and are licensed to operate in Asia, Europe and the Americas, connecting up to 2,000 network access points in more than 200 countries around the world.
In July 2022, Telstra successfully acquired Digicel Pacific, the largest mobile telecommunications provider in the South Pacific.