3D Printing - A Double Edged Sword - How Can Businesses Manage Their Risk While Seizing The Opportunity? March 2015

3D Printing - A Double Edged Sword - How Can Businesses Manage Their Risk While Seizing The Opportunity?

March 2015

www.pwc.com/cybersecurity

PwC

Agenda

2

1. Why am I here ?

2. Why do you care ?

3. What can we do about it ?

3PwC

3D Printing business adoption is happening - now

Source: PwC and Zpryme survey and analysis, “2014 Disruptive Manufacturing Innovations Survey”

66.7%

66.7% of manufacturers are adopting 3DP in some way (Experimenting to determine how they might apply it, or using it to prototype products or producing final products.)

24.7%

24.7% of manufacturers plan to adopt 3DP in the future in some way• 5.2% within the next year• 10.3% within 3 years• 9.2% some time beyond 3 years

8.6%8.6% of manufacturers do not plan to adopt 3DP ever

4PwC

Business benefits of 3D Printing are significant

30%of respondents in a PwC survey believe that supply chains face restructuring due to 3DP

According to PwC analysis, assuming half of MRO (maintenance, repair and operation) materials are 3DP printed, the global airline industry could realize about $1.8 billion in additional pre-tax profits annually.


5PwC

It’s almost here so we have a little more time

. . . and barriers to 3DP adoption need to be crossed before full-scale adoption occurs

47.2% Uncertain quality of the final product (strength, durability, etc.)

31.5%Printers are too expensive

45.3% Lack of current expertise in our company to fully exploit the technology and difficulty in recruiting talent

22.2%Inability to print with multiple materials

21.3%Too few “links” (i.e., feedstock materials) currently available


6PwC

3D Printing has its benefits and challenges

Q. If and when 3D printing is widely adopted, what will be the most disruptive effect on US manufacturing?

13.8%

27.8%

29.6%

9.3%

9.3%

10.2%

Reduced need for transportation and logistics

0 5 10

15

20

25

30

35

40

45

50

Increased competition to find talent for 3D printing

Weakened economic viability of traditional high-volume productionChanged relationship with customers/end users

Threat to intellectual property

Restructured supply chains


7PwC

Protecting your business assets

Identification of Assets

61% of survey respondents say they have a program to identify sensitive assets

61%

Business Classification of Data

69% of survey respondents have a program to classify the business value of data69%

Source: PwC, CSO magazine, CIO magazine, The Global State of Information Security® Survey 2015

PwC

Agenda

8

1. Why am I here ?



9PwC

Competitive Advantage

10PwC

What’s a trade secret?

• All forms and types of financial, business, scientific, technical, economic, or engineering information

• Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, the public

Source: Create.org and PwC, Economic Impact of Trade Secret Theft, February 2015

11PwC

3D Printing business drivers resulting in cyber risks

The Opportunity

• 3D printing presents game-changing opportunities for manufacturing companies.

• Reduce costs, speed up manufacturing processes, reduce distribution and logistics costs, and discover novel new products or enhancements

The Risk

• 3D printing technology increases the risk of intellectual property loss.

• As diffuse trade secrets are consolidated into digital files, there is increased risk of loss of competitive advantage

Shifting Intellectual Property Information Models

CURRENT FUTUREIP

PwC

Agenda

12

1. Why am I here ?



PwC

Understand the trade-offs

13

1. Talk to your key stakeholders about the Cybersecurity challenges they might face as a result of 3D printing adoptions

2. Ask your key stakeholders:

• Do they know what their most important information assets are?

• Do they understand risks when concentrating their trade secrets into digital files ?

• Do they understand how heightened security controls can be implemented to protect the most important assets – prior to adopting 3D technology ?

Speed to Market

Features Quality

Trilemma

Pick any two

Seize the opportunity

PwC

Measure the impact

14

Potentially tens or hundreds of thousands of

assets

Filte

r Ass

ets

Reporting and Prioritization

Critical Assets

Impact Modeling

Confidentiality

Integrity

Availability

Asset Pool (systems, servers, applications, data,

etc.)An economic impact analysis can be executed across three phases:

1.) Critical Asset Identification

2.) Impact Modeling

3.) Reporting & Prioritization

15PwC

Understanding your key security controls

Lifecycle Management

Valuable 3D Digital Files

Security Awareness Training

Focused Monitoring

Multi-factor Authentication

Encryption

Network Segmentation

PwC

Secure by design

16

Product Change

Product Inception

QA/Testing

Detailed Requirements

ProductFinishing and

Release

Product Build & Prototyping

Product

Development

PwC

Proactive security can enable the business

• What critical and sensitive information are exposed to threats?

• Which threats represent the greatest risk to the organization?

• How should information be protected against these threats?

2High-Value Information asset identification

• Where is high-value information being stored?

• Is it classified appropriately?

• What data retention policies apply to it?

• What controls are in place to protect it?

3Threat Vulnerability analysis

4Secure by design product development

• How can you harvest and combine diverse business, technical, analytical, regulatory, and investigative knowledge and know-how to deliver both profitable and secure products?

1Business-aligned approach

• What are the corporation’s most critical and sensitive information?

• Who is using it? • What business

processes does it support?

• How does it impact the bottom line?

17

Business solutions designed to solve today’s Cybersecurity challenges

PwC

Key Contacts

© 2015 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

Quentin “Q” OrrPartner | Philadelphia [email protected] 267-330-2699

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3D Printing - A Double Edged Sword - How Can Businesses Manage Their Risk While Seizing The Opportunity? March 2015