July 18, 2024 | Author: Nicholas Friedman

Bridging the IT/OT divide in Utilities: A Friendly Guide

Hey there, CISOs!

Dive into your most comfortable chair, grab your favorite beverage, and let’s chat about something close to our cyber-hearts: the convergence of IT and OT in the utilities sector. It’s a journey—sometimes bumpy, always enlightening—that’s reshaping how we secure our critical infrastructure. And, as we navigate these challenges, let’s make it a bit more personal and a lot less formal.

Ready? Let’s break it down, step by step, and sprinkle in some practical advice along the way… I hope you like analogies.

1. The Great IT-OT Divide: Where We’re Starting From

The Isolation Issue

Imagine IT and OT as two siblings who’ve grown up in the same house but somehow never really spoke. They’ve got so much to offer each other, but the walls between them have kept them apart, making our utility operations vulnerable and, frankly, a bit inefficient.

Making the Connection+

• Risk Assessments: It’s like checking the weather before a big family trip however two siblings are driving to the vacation rental from two different event locations. We will need to plan how each sibling gets to the same location (IT and OT systems) to understand the cloudy areas, potential storms and design a plan to ideally travel through sunny weather. This means identifying which systems are most vulnerable and why, then making a prioritized list to tackle them in a strategic approach.

• Cross-Training Teams: Ever tried learning a bit about your sibling’s favorite hobby? Perhaps you love basketball, and they love golf, and so you play together to share in the other’s experience. That’s cross-training. Get your IT folks to understand the nuances of OT and vice versa. It fosters empathy and collaboration, making your security posture that much stronger. And as siblings are typically a few years apart, it is likely your IT and OT teams and environments are at different levels of program maturity and automation. Each team will need to contribute to each other’s understanding of their respective experience.

2. Embracing Modernization: The Cool Tech Upgrade

Why Stick with the Old?

Holding onto legacy OT systems is like still using a flip phone—it gets the job done, but you are missing out on so much more. Modernizing these systems opens a world of insight, visibility, security, efficiency, and yes, even cost savings.

Getting with the Times

• Unidirectional Connectivity: Think of it as a one-way street where OT data flows to IT without threats hitching a ride back. It’s like sending your data on a safe, one-way trip to where it can be best used. This can be architected and deployed in either a Fed Ramp High SaaS environment and/or a on prem hosting option with both recommended to have advanced encryption capabilities.

• Leveraging ServiceNow OTM: Imagine having a Swiss Army knife for your OT modernization efforts. ServiceNow’s OTM suite is just that, offering tools for asset visibility, inventory, vulnerability management, regulatory complaince management and much more. It’s about bringing the right tools for the job, ensuring you are always ready, no matter what the world throws your way.

3. Enhancing Utility Cybersecurity: Attack Simulation, Proactive Threat Hunting, and Playbook Automation

As we delve deeper into the world of utility cybersecurity, let’s explore three critical strategies that can significantly elevate our defense mechanisms: Attack Simulation, Proactive Threat Hunting, and Playbook Automation. These approaches not only bolster our security posture but also ensure that our utilities are prepared, resilient, and one step ahead of cyber threats.

Attack Simulation: Testing Defenses in a Controlled Environment

The Ultimate Cyber Drill

Attack simulation, or red teaming, is like conducting a full-scale cyber drill without the actual risk. It involves simulating cyberattacks on your systems to test the resilience of your defenses and identify vulnerabilities.

Benefits of Attack Simulation

• Real-World Testing: Simulate a wide range of attacks to see how your systems would stand up to real threats. It’s like a fire drill for your cyber defenses.

• Identify Weaknesses: Uncover vulnerabilities in your systems, processes, and human responses that might not be apparent until they are exploited by an actual attack.

• Enhance Response Readiness: Improve your incident response strategies by identifying gaps in your current protocols and refining your response to various attack scenarios.

4. Proactive Threat Hunting: The Cybersecurity Safari

Tracking Down Hidden Threats

Proactive Threat Hunting is about taking the initiative to search for hidden malware or attackers within your network that have evaded traditional detection methods. It’s the cybersecurity equivalent of going on a safari, where you are actively looking for signs of the adversary in the vast landscape of your network.

Advantages of Proactive Threat Hunting

• Early Detection: Catch threats before they manifest into full-blown attacks, reducing potential damage.

• Insight into Adversary Tactics: MITRE ATT&CK + Threat intelligence = Gain a deeper understanding of how attackers operate, which helps in developing more effective defenses.

• Continuous Improvement: Each hunting expedition provides new insights, which can be used to continually refine and improve security measures. This is a combination of your team experience, benchmarking with industry peers, leveraging technology platform capabilities and an experience consulting partner to help you instantiate best practices.

5. Playbook Automation: The Cybersecurity Conductor for your orchestra

Orchestrating Security Responses

Playbook Automation involves the use of predefined action sets to respond to various cyber threats automatically. Think of it as having a conductor for your cybersecurity orchestra, ensuring every section plays its part at the right time. But like any professional orchestra, practice makes perfect, so having scheduled and planned tabletop exercises can significantly improve operational effectiveness.

Streamlining Incident Response

• Speed and Efficiency: Automate responses to common threats, significantly reducing the time to respond and mitigate potential damage.

• Consistency: Ensure that every incident is handled consistently, following best practices and reducing the likelihood of human error.

• Scalability: Manage a large volume of alerts effectively, allowing your security team to focus on more complex tasks.

• Context: Having a unified data model between IT and OT teams with segmented data sets can provide powerful insights and metrics to executive leadership.

Elevating Utility Cybersecurity to New Heights

Integrating Attack Simulation, Proactive Threat Hunting, and Playbook Automation into your cybersecurity strategy propels your utility’s defenses from reactive to proactive. These approaches not only enhance your ability to withstand and respond to cyber threats but also build a culture of continuous improvement and resilience. Technology can play an additional level of maturity when implementing and analyzing digital twins to maximize asset effectiveness, efficiencies, and overall lifespan on an asset.

In the evolving landscape of utility cybersecurity, staying ahead means being prepared for anything. By adopting these strategies, we’re not just defending against cyberattacks; we’re actively working to anticipate, understand, and neutralize them before they can impact our critical infrastructure. Let’s embrace these practices to ensure our utilities are not only secure but also resilient and ready to face the cyber challenges of tomorrow. Proactive planning can secure a thriving future for our utilities, powered by foresight, innovation, and unwavering vigilance.

6. The ServiceNow OTM Magic Wand

Integrating Everything Under One Roof – The magic of a unified data model with the benefits of data segmentation.

Combining IT and OT under a single management umbrella feels like moving from a cluttered desk to an organized workspace. Everything you need is right there, streamlined, and efficient. Let’s image you are the organized sibling with a clean an organized room (policies and controls in SharePoint or a secure and single repository), and your sibling’s room is pig stye ( policies, controls, SOPs are on this laptop, that tablet, this SharePoint file, that google drive, and some of it is in your teams brans as they have been there for 20+ years and they just know how it’s done). I’m confident everyone reading this was the orderly sibling.

Practical Magic Tips

• OT Asset Visibility and CMDB: Use this to keep track of all your OT assets, like a detailed inventory list. This isn’t just about knowing what you have; it’s about understanding the state of each asset, its software version, and its health.

• Vulnerability and Incident Response: This is your rapid response team. When vulnerabilities are spotted, you need to move quickly and effectively, patching holes and securing your network.

• Compliance Management: Think of this as your rulebook and your gatekeeper. Keeping up with NERC-CIP and TSA compliance is non-negotiable, and controlling who has access to what ensures that only the right hands are on your critical systems.

• Identity and access Management: Ensuring your NERC and TSA data is encrypted and not accessible by your IT platform admins is critical for security and compliance. Segmenting data is step one, encryption of the data is step two, and access controls are step 3 for NERC CIP and TSA guidelines.

7. Keeping Data Safe and Sound

The Dual Pathway to Data Security

ServiceNow gives you options because one size doesn’t fit all. Whether you’re more comfortable with commercial cloud storage, Fed Ramp cloud storage or keeping things on-premises, the key is securing that data like it’s the crown jewels.

Choosing Your Path Wisely

• Encryption Services: Using advanced encryption, whether in the cloud or on-premises, is like having an unbreakable safe. ServiceNow’s Vault is top-notch for keeping your data secure from prying eyes.

• Data Storage Decisions: Consider what makes the most sense for your operation. Cloud storage offers flexibility and scalability, in both commercial cloud storage and Fed Ramp High cloud storage, while on-premises can give you that hands-on control some of us just can’t let go of.

8. The Bigger Picture: Our World, Our People and Our Impact

More Than Just Bits and Bytes

This journey toward IT and OT convergence isn’t just about beefing up security. It’s about making a positive impact on the environment and ensuring the safety of our teams and communities. By maximizing asset life and efficiencies through the context of the risk profile of the asset deployment, we can improve how we manage how these negative risk events impact people and our environment.

Making It All Add Up

• Embrace Sustainability: By optimizing how we use our OT assets, we’re not just saving on costs; we’re reducing our environmental footprint. It’s about doing our part for the planet, one watt at a time.

• Safety First: With better monitoring and response capabilities, we’re not just protecting systems; we’re protecting people. Ensuring the safety of our employees and the communities we serve is paramount.

Embracing Digital Twins: The Technical Triumphs and Program Benefits

Imagine having a virtual replica of your utility’s physical assets and systems. It’s not science fiction—it’s a game-changing technology that’s reshaping how we monitor, manage, and make decisions in the utility sector. What was once only conceptualized in sci-fi movies and TV shows is now a reality.

The Technical Benefits of Digital Twins

A Mirror World of Your Operations

Digital Twins offer a dynamic, digital mirror of physical assets, processes, or systems. This technology harnesses data, machine learning, and analytics to create living models that update and change as their physical counterparts evolve. The implications are vast and the benefits, immense.

Real-Time Monitoring and Predictive Insights

• Visibility Like Never Before: With Digital Twins, you gain a 360-degree view of your assets’ performance in real-time. It’s like having X-ray vision, seeing beyond the surface to understand the heart of your operations.

• Predictive Maintenance: Armed with historical and real-time data, Digital Twins can predict when and where maintenance is needed. This foresight reduces downtime and extends the lifespan of assets, turning reactive measures into proactive strategies.

Optimization and Simulation

• Operational Excellence: Digital Twins enable you to simulate different scenarios and outcomes, allowing for optimization of processes before implementing changes in the real world. It’s like playing a sophisticated video game where you can test strategies and see their outcomes without any real-world risk.

• Efficiency Improvements: By understanding how systems and assets perform under various conditions, utilities can optimize operations for efficiency, reducing waste and enhancing productivity.

The Program Benefits of Digital Twins

Driving Innovation and Sustainability

The application of Digital Twins extends beyond mere technical enhancements. They are catalysts for innovation, sustainability, and strategic planning, offering benefits that ripple throughout the entire utility operation.

Strategic Decision-Making

• Informed Investments: Digital Twins provide a detailed understanding of how assets perform and interact, guiding strategic investments in infrastructure and technology.

• Risk Management: With the ability to simulate scenarios, utilities can better assess and manage risks, planning for contingencies with unparalleled insight.

Enhancing Customer Experience and Environmental Sustainability

• Reliability and Service Quality: By minimizing downtime and optimizing operations, utilities can improve service reliability and quality, enhancing customer satisfaction.

• Sustainability Goals: Digital Twins support sustainability efforts by identifying efficiencies that reduce energy consumption and emissions, aligning with broader environmental goals.

A Pathway to Future-Ready Utilities

Adopting Digital Twins technology is not just about keeping up with digital transformation trends; it’s about positioning your utility at the forefront of innovation and operational excellence. This approach offers a comprehensive view of your operations, unlocking opportunities for optimization, strategic planning, and enhanced decision-making that were previously beyond reach.

9. The Business Value Proposition

What does this mean for your utility in terms of tangible benefits, efficiency boosts, and that all-important return on investment? And what does this mean for your PUC reviews and approvals? Strap in because this is where it gets exciting.

Unlocking the Business Value of ServiceNow’s OTM Solution

More Than Just a Security Upgrade

Implementing ServiceNow’s OTM solutions (OT Asset, OT visibility, OT Vulnerability, NERC CIP, and TSA compliance) isn’t just about bolstering your cyber defenses—it’s a strategic move that translates into real-world business value. Imagine injecting your operations with a dose of efficiency steroids, gaining visibility like never before, and proving to your stakeholders that yes, this tech investment is worth every penny.

Company Benefits: The Big Picture

• Streamlined Operations: ServiceNow’s OTM solutions act like the central nervous system for your IT and OT environments, offering real-time visibility and control. This means decisions are informed, actions are quicker, and enables planned downtime vs unexpected downtime.

• Enhanced Compliance Posture: With regulations tighter than a drum, automated compliance tracking isn’t just nice to have; it’s a vital component of your operations. ServiceNow helps keep you on the right side of regulations, reducing the risk of fines and the headaches of manual compliance efforts. Plus, with the exportable ERT workbook capability, NERC and FERC reporting is as easy as pushing button.

Efficiencies Galore

• Automated Workflows: Automate the mundane and focus your human talent where it counts. With ServiceNow’s OTM solutions, repetitive tasks are managed by the system, allowing your team to focus on strategic initiatives.

• Predictive Maintenance: By leveraging data analytics, predict and prevent issues before they become problems. This not only saves costs but also extends the life of your critical OT assets.

Return on Investment: Show Me the Money

• Cost Savings: Reduced downtime, optimized asset performance, and streamlined compliance efforts all contribute to significant cost savings. It’s like finding money in the budget you didn’t know you had.

• Revenue Protection: By ensuring operational continuity and enhancing security posture, you’re not just saving; you’re actively protecting your revenue streams against interruptions and breaches.

• Investment in the Future: Implementing ServiceNow’s OTM solutions are an investment in your utility’s resilience and efficiency. While the upfront costs may be significant, the long-term savings, operational improvements, and risk reduction paint a compelling ROI picture.

10. Overall Business Value: A Smart Investment

The true value of ServiceNow’s OTM solutions lie not just in its immediate benefits but in its alignment with the future of utility operations. In a world where digital transformation dictates survival, being ahead in managing and securing your IT and OT environments isn’t just smart—it’s essential. This solution offers a pathway to not only navigate the complexities of today’s cyber and operational challenges but to thrive amidst them.

Implementing ServiceNow’s OTM solutions are akin to setting the foundations for a more secure, efficient, and agile utility operation. The initial investment paves the way for a future where your utility is not just surviving but leading the charge in innovation and operational excellence. So, as we continue our journey through the evolving landscape of utility cybersecurity and operational management, remember that the right investments today will define our success tomorrow. Cheers to making smart moves and unlocking the full potential of our utilities!

Alright, fellow CISOs, that’s a wrap on our casual dive into the world of IT and OT convergence. Remember, this isn’t just about technology; it’s about building a more secure, efficient, and responsible utility sector. And with tools like ServiceNow’s OTM suite at our disposal, we’re well-equipped to tackle the challenges ahead. Here’s to breaking down those walls and building something great together.

Cheers to our journey ahead!

About Author:

Nicholas Friedman – CEO & Managing Partner, Denver, CO

Nic is an experienced ERM strategist and advisory lead with over 24 years of enterprise experience in information security, risk, and compliance domains. He works with CISOs, CROs, and CCOs to mature and automate IT and OT ERM programs. At Templar Shield, Nic oversees company strategy, partnerships, IP development, and executive client relationships for many of Templar Shield’s key clients across various industries, including energy, utilities, petrochemical, manufacturing, public sector, telco, and banking.​

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