The Ultimate Guide to Cybersecurity to Drive InnovationeBookCisco Public

© 2016 Cisco and/or its affiliates. All rights reserved.

The Ultimate Guide to Cybersecurity to Drive Innovation

The Ultimate Guide to Cybersecurity to Drive InnovationeBookCisco Public

© 2016 Cisco and/or its affiliates. All rights reserved.

Use Cybersecurity to Boost Innovation

Growth and success are two buzzwords that every business executive wants to hear, and better still, bring about for their company’s sales and profits.

If you’re like most executives, you want to introduce products and services that attract new customers, expand your markets, and realize new streams of income for your organization.

The intensely competitive business environment has made developing digital business models, products, and services an imperative. Disruptors and agile firms have already demonstrated the power of digital. They’re now taking advantage of web, mobile, and cloud technologies to offer new possibilities to consumers. This is creating an unprecedented level of access and convenience, sometimes displacing incumbents or stealing their market share.

For your company to win the fight for sales, you need to strengthen your own innovative capabilities.

Yet companies may be reluctant to develop digital products and services because of potential cybersecurity risks. Securing the unknown seems daunting, and because of this, many companies are not innovating with the speed and confidence they need to win.

Subpar cybersecurity leaves companies in the worst possible competitive position: not innovating fast enough to compete, yet not safe enough to handle a cyber attack, despite delaying digital innovations.

But all is not lost. Instead of seeing digital innovations as a source of risk or cybersecurity as an additional cost, a better way is to consider how cybersecurity helps to enable growth and transformation. Cybersecurity excellence can create business value and a competitive advantage.

Straddling Security and Innovation

Kevin Kerr is Chief Information Security Officer at Oak Ridge National Laboratories (ORNL), the largest United States Department of Energy research institution. His job: to protect the wealth of information and intellectual property created at the laboratory.

“Open collaborative research, often across countries, is the lifeblood of our laboratory. ORNL’s challenge is to continue nurturing its research while protecting its data,” he says.

To do this, cybersecurity must not be an impediment.

“We do not want to be constantly saying no to requests from our scientists and engineers, and putting up blockades. We need to create solutions so our researchers can do their work. We need to be in sync with them,” says Kerr.

“Cybersecurity cannot be about technology; it has to be about our business. We want to provide the capabilities for our researchers to do things right. We want to bring in new security ideas and technologies and demonstrate how we can do things better while protecting their work,” he adds.

Organizations that turn cybersecurity excellence into a true competitive advantage can innovate faster. They can also more fully pursue the sort of digital transformation that helps them respond nimbly to rapidly changing environments.

This agility makes companies effective and boosts financial performance. Cybersecurity excellence also gives firms the opportunity to differentiate themselves as a brand their customers can trust.

The Ultimate Guide to Cybersecurity to Drive InnovationeBookCisco Public

© 2016 Cisco and/or its affiliates. All rights reserved.

“In a highly regulated environment such as banking and finance, having solid cybersecurity programs and risk management programs enables us to enhance the capability to attract customers, protect our reputation, and grow as an organization,” notes Dan Polly, Director of Enterprise Information Security at First Financial Bank.

One of the many ways First Financial Bank has harnessed technology is to enhance the security of remote access, while preserving the usability of the solution.

“Our workforce becomes both more productive and more secure because of the organization’s technology choices,” says Dan Polly.

The need to protect and perform has increased cybersecurity spending. Even amidst a general decline in corporate IT budgets in recent years, companies are placing a new priority on cybersecurity investments.

Making a Business Case for Cybersecurity

A recent Cisco survey and study1 showed that 87 percent of companies expect to increase their cybersecurity spending. The survey also revealed that a significant proportion of these companies said they would spend more on cybersecurity if only they could better measure its business outcomes.

“I can quantify how much it costs for servers to be down for a day or a week, or the costs of replacing them, but to truly understand the value behind cybersecurity, we need to ask: what is the value of our data?” says Kerr.

Kerr points to the potential risks, including embarrassment and even lawsuits, that come with data being compromised. He stresses the importance of being prepared.

“We want to show the value of being preventive, and of being proactive instead of reactive,” he adds.

Digital Value at Stake is one way to place a value on security. It is based on two components:

1. Entirely new sources of value resulting from digital investments and innovation2. Value shifting among companies based on their ability to harness digital capabilities

Part of the Digital Value at Stake comes from the defensive side of cybersecurity, such as: • Protection of intellectual property• Reduction of compromised data (both internal and customer information)• Increased business uptime and reduced network downtime• Protection of financial assets• Safeguarding of sensitive government, national, and political information• Preservation of business reputation

The bigger opportunity comes from cybersecurity as a foundation for innovation and growth. However, our study revealed that cybersecurity vulnerabilities and concerns are making many organizations reluctant to pursue digital products and services. In some cases, cybersecurity worries are forcing them to halt mission-critical initiatives entirely.

This has a quantifiable cost: the value private and public sector organizations are leaving on the table by ceding digital innovation to more nimble competitors.

1 Cybersecurity as a Growth Advantage, Cisco, 2016

The Ultimate Guide to Cybersecurity to Drive InnovationeBookCisco Public

© 2016 Cisco and/or its affiliates. All rights reserved.

Here are three industry use cases presented by our study. They illustrate how much value is lost when cybersecurity concerns delay digital initiatives:

1) Manufacturing Industry: Analytics-Based Predictive Maintenance

Manufacturers need to provide their operating environments with digital capabilities related to the Internet of Things, analytics, and more. To do that, they need confidence in their cybersecurity. Analytics-focused predictive maintenance is an example of a critical digital use case for manufacturers to implement in order to remain competitive.

Based on the perceived level of cybersecurity risk associated with this use case, we estimate it will take one to two years to catch up to competitors who have already adopted it. By delaying implementation, manufacturers miss out on capturing their share of the estimated US$418 billion in global Digital Value at Stake that analytic predictive maintenance will create over 10 years. As a result, they reduce their ability to innovate and grow.

2) Financial Services: Mobile Payments

Financial institutions are built on customer trust. They must be able to prevent security breaches, and detect and remedy them quickly if they occur. Mobile-payment security breaches can result in downtime, lost revenue, diminished business reputation, retribution costs to remedy the damage, and loss of financial data.

What’s at stake? With the proper cybersecurity capabilities in place, mobile payments will generate as much as US$396 billion across industries from 2015-2024.

3) Retail: In-Store Analytics

In the retail industry, in-store analytics is about improving workforce efficiency through dashboards, real-time information, operational analytics, workforce management tools, and shopping analytics. Cybersecurity is a key factor: information quality and privacy are critical to ensure the source of insights is robust and the information has not been compromised.

A potential security breach could result in loss of customer information, as well as tainted data. Customers could also lose confidence about sharing personal data with the retailer, making analytics less informative and pervasive.

With the proper cybersecurity foundation, in-store analytics has the potential to generate $285 billion in digital value from 2015-2024.

Figure 1. Digital Value At Stake Chart

Manufacturing Industry: Analytics-Driven Predictive Maintenance

Financial Services:Mobile Payments

Retail: In-storeAnalytics

$418 billion

$396 billion

$285 billion

The Ultimate Guide to Cybersecurity to Drive InnovationeBookCisco Public

© 2016 Cisco and/or its affiliates. All rights reserved.

Digital Business Transformation

To compete more effectively and improve cybersecurity, established companies need to transform their businesses with digital technologies.

True digital transformation means organizational change made possible by digital technologies and digital business models. It gives established companies the opportunity to redefine the way they create value for customers, and to change their operations and value chains to improve agility.

Companies can use digital technologies to make the types of exponential improvements that give disruptors such marked advantages. Most notable of these technologies are big data and analytics, the Internet of Things, digital workforce, and cloud computing.

Digital transformation also demands that organizations build cybersecurity into their plans from the earliest stages. For example, mobile payments company, Square, includes cybersecurity experts in all of phases of its product design. Advanced cybersecurity is considered an essential criterion, rather than being included almost as an afterthought at the end of product development.

The same is true when the company designs new internal processes. Nothing is done at Square without cybersecurity experts actively collaborating with executives and designers.

In essence, with digital transformation, companies can build new, digitally based processes that do the job better, with cybersecurity baked in from the start.

As a result, companies can undertake digital projects with greater confidence, helping them to innovate faster and capture a greater share of Digital Value at Stake.

Cybersecurity and Innovation: A Match Made in Digital Heaven

Today’s companies operate in an era of constant disruption and continual innovation. Using cybersecurity to improve strategic agility and operational excellence will serve as a key differentiator for those hoping to accelerate their growth.

Your company can turn cybersecurity into your growth advantage. By re-engineering digital processes with cybersecurity as the foundation, you can innovate with confidence, creating new business opportunities, income streams, and growth.

“We have built a good foundation that has enough flexibility so that we can extend our business capabilities in a way that is cost-effective and efficient,” says Brad Stroeh, Director of Information Security Technology at First Financial Bank. “We try to extend our security framework with cybersecurity solutions that are both complementary and integrated. This helps to reduce overall complexity,”

Cisco customers have demonstrated a keen interest in flexible, scalable, cost-effective, efficient, and integrated cybersecurity solutions that help them reduce complexity across systems. The Cisco approach to cybersecurity models the security challenge as a continuum. The complexity of threats and its rapid evolution means that some threats will successfully penetrate the network, and cybersecurity solutions must be able to contain and recover from the attack.

As new threats arise, security solutions that are only effective at one point in time will quickly become obsolete. Instead, security solutions need to be always operating, looking out for threats, and updating themselves to match the latest threat intelligence. Our solutions need to be continuous.

The Ultimate Guide to Cybersecurity to Drive InnovationeBookCisco Public

© 2016 Cisco and/or its affiliates. All rights reserved.

Cisco cybersecurity solutions provide superior, comprehensive threat visibility and protection covering the entire attack continuum. We offer the broadest set of enforcement and remediation options, with a product range that can address immediate security gaps and, more importantly, integrate to form an overall security system.

Cisco solutions are not only effective, but are also easy to implement, automated, and open, freeing up time for you to address your main business concerns.

To take advantage of cybersecurity to improve growth and innovation in your company, or to simply learn more about how cybersecurity can help your business, get in touch with your local Cisco representative. We will work with you to evaluate the adoption of an integrated cybersecurity strategy that can help you protect and improve your organization.

To learn more about how cybersecurity can help your organization’s growth, call us at 1-800-553-6387 or visit cisco.com/go/security.