News & Views

The Changing Face of Cybersecurity - A Look Back at 2016 and a Look Forward to 2017

Cybersecurity has come a long way over the past five years. Controls have been invented to monitor a user’s every move without violating their privacy and the chief information security officer (CISO) is now a fixture in many modern organisations.

With 2017 looming large, Jamie Graves, CEO of cyber security company ZoneFox, looks at what companies need to do as 2016 draws to a close, and what may be in store during 2017. • Stay on top of vulnerabilities - Microsoft states that 41.8% of vulnerabilities are given a highly severe rating these days. This is a three-year high! Ensure you’re prioritising and managing your vulnerabilities accordingly. • Wean your people off of Flash - According to Microsoft, 90% of malicious web pages contained Flash. HTML5 is great at streaming video. As such, Flash is no longer necessary and should be removed from your systems. • Prepare for ransomware - Ransomware has become ubiquitous. 61% of exploit payloads are now ransomware, according to

MalwareBytes. Keep good backups, monitor your files for encryption activities, and - ideally - employ endpoint protection with application whitelisting or encapsulation. • Emphasis on detection - Prevention eventually fails. So, put your money on detecting threats or breaches as quickly as possible. 2016 saw several next-generation platforms come into being; machine learning and user behaviour analytics, along with big data, are helping to detect malicious behaviour more efficiently. • Get a CISO! - The Price Waterhouse Cooper Global State of

Information Security survey states that in 2015, 91% of organisations were following a risk-based cybersecurity framework, but only 54% have a CISO running their cybersecurity program. Roughly half of respondents are running security awareness training, conducting threat assessments, or are monitoring cyber intel. There may be a correlation here: A risk-based framework is a great foundation, but less effective without a CISO dedicated to driving the initiatives forward. Five years ago, the term CISO was not popular, ransomware was only a twinkle in its daddy’s eye and Flash vulnerabilities were (relatively) few and far between - but times are changing.

So what’s in store for 2017?

It looks as though there will be at least three heavy hitters next year. • (further) Proliferation of mobile malware - Mobile malware seems to be growing at an exponential rate. Security researchers at Check Point Software have found upwards of 10 million

Android phones infected with auto-rooting malware. The idea that some mobile malware can embed itself in a phone’s bootloader and remain persistent even after factory reset is a scary thought. • Internet of Things leveraged for attacks - In September 2016

Brian Krebs’s blog, KrebsOnSecurity, went down due to a 620Gb/s(!) Distributed Denial of Service (DDoS) attack carried out by IoT devices. The Mirai malware code - used in the attack on Krebs - has recently been released, which means that attackers will be able to recruit vulnerable IoT devices for similar attacks. • Emphasis on obtaining, training and retaining cybersecurity staff - Over the past few years, much focus has been placed on buying the best tech, hiring consultants and auditors and putting employees in place to monitor and respond to cyber threats. Unfortunately, there are more positions than there are qualified cybersecurity analysts. This is a problem.

Requirements for employment should be reduced (i.e. no bachelor’s degree required), or employees must maintain certifications and regular training to stay up to date with the latest threat trends and technologies. • User Behaviour Analysis and AI - Artificial intelligence and

UBA may be one of our saving graces next year. Leveraging AI and UBA will provide new means for detecting threats, reducing the need for “eyes on glass” and allowing the good guys to actively remediate threats as they appear. Many of the trends of 2016 are going to stick with us and new ones will emerge over the coming months - so it’s important to keep cyber security as a priority.

HEC Paris Launches the Movement for Social x Business Impact

HEC Paris, together with leading multinational corporations and associations, launches an ambitious new initiative, the Movement for Social x Business Impact. It aims at contributing to a more inclusive economy, where businesses tend to maximise their social impact together with their economic performance.

This Movement builds on the academic research and teaching of the Social Business / Enterprise and Poverty Chair designed in 2009 and co-chaired by 2006 Nobel Prize Professor Muhammad Yunus and Martin Hirsch, former High Commissioner for Active Solidarity Against Poverty in France, and currently Head of the Assistance Publique-Hôpitaux de Paris (Paris Public Hospitals Administration). From the start, it has been funded by Danone, Schneider Electric and Renault. The Chair in turn helped create the Action-Tank Entreprise & Pauvreté designed to incubate inclusive business models fighting poverty in France.

This initiative further anchors HEC Paris’s new strategy, which focuses on Entrepreneurship, Digital Transformation and Social Impact.

HEC’s Movement will focus on business solutions to fight poverty and uphold four key concepts:

Catalysing world-class research on business social impact and social business by building on partnerships with the best international academic teams from universities in particular based in the US, UK, Asia, Africa and Latin America.

Strengthening and broadening teaching opportunities which concentrate on how businesses can maximise their social impact. The objective is to train a new generation of managers and leaders at HEC Paris, and in the other academic member institutions of the Movement. This is achieved by reaching out to all respective students, and co-developing business cases to be shared worldwide.

Accelerating the deployment and scaling up social business projects incubated in France by the coalition members (companies, NGOs, social entrepreneurs and public authorities).

Providing institutional resources to develop an international network of Action-Tank social business incubation models. These will provide essential goods and services to the poorest populations, with a focus on Africa, Asia, Europe and Latin America. It will be co-sponsored by members of the Action-Tank together with local business, academic and civil society partners.

The Movement for Social x Business Impact will be managed and integrated by the Society & Organization (SnO) Center of HEC Paris.

To finance and support the Movement over a three-year period, the three initial funders of the Chair will be joined by three new corporate partners: Sodexo, Veolia and Total. The Movement co-founders will continue to benefit from active and engaged support by the other companies and members of the Action-Tank. As part of its Social Impact Practice, BCG consulting firm, in partnership with Yunus Social Business, will further support the Movement at a national and global level.

New Book will Chronicle the AI Revolution and Map Pathways to the Future

Fast Future Publishing and AI Business have announced their collaboration on The Future of AI in Business - Unlocking Human Potential. The book will bring together case studies and future perspectives from leaders in the development and deployment of AI across the business world and will be launched at the AI Business’s The AI Summit in London on May 9 2017.

The book is a collaboration between Fast Future Publishing, a specialist “exponential” publisher focusing on fast track delivery of futures-orientated books, and AI Business, the leading media and events organisation focused on the practical application of artificial intelligence (AI) in the business world.

The book is in response to the explosion of demand for quality insights on the current and future role of AI in Business. Over the last year, interest in AI has reached fever pitch as the business world has started to explore and embrace what represents potentially the most socially transformative technology since the invention of gun powder. The pace of investment in, and adoption of, AI in business is accelerating, and the level of interest and activity is rising rapidly across all sectors.

Working Smarter, Not Harder: Blue Street Capital Follows Tower Paddle Boards’ Lead in Implementing 5-hour Work Day

We often hear the phrase, “Work smarter, not harder.” These are words to live by, no doubt, but what exactly do they mean, and how does one accomplish this task? Is it by learning more about the industry one works in, in order to be more insightful? Does it entail working with efficiency rather than simply brute determination? Does it mean creating an environment in which employees feel valued, and are thus willing to put forth a greater effort? In the case of Blue Street Capital, an equipment leasing and financing company based in Huntington Beach, California, the answer is: all of the above.

On August 1, 2016, on a quest to “work smarter, not harder”, Blue Street Capital shook up the way they do business, by adopting a revolutionary new workplace concept: the five-hour work day. In a bold move, they cut operating hours by nearly 50% without cutting employee pay. Why, one might wonder, would they want to pay their employees the same to work less? The answer is simple: they feel that in allowing their employees to be more connected to their lives outside of work, they will in turn be happier, more rested, and more efficient.

Blue Street is hopeful that this concept will make their company a leader in the next workplace revolution. Now that we are firmly ensconced in the digital age, there is not the same necessity to work on-site from 9-5 in order to get the job done. CEO, David Rhoads, said of the switch: “At Blue Street, we are hyper-focused on bringing massive value to our customers, partners, and employees alike, and this is one giant step we can take towards that goal. We’re confident that by condensing the hours we work, we will be able to spur innovation, creativity and most importantly have ‘stoked employees’.

Smart Railways Market Worth 20.58 Billion USD by 2021

According to a new market research report “Smart Railways Market by Solution (Passenger Information, Freight Information, Rail Communication, Advanced Security Monitoring, Rail Analytics), Component, Service (Professional, Managed), and Region - Global Forecast to 2021”, published by MarketsandMarkets, the market size is expected to grow from USD 10.50 Billion in 2016 to USD 20.58 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 14.4% during the period 2016-2021.

The major drivers for upsurge in demand for smart railways solutions, components, and services include increasing demand for improved services in railways, emerging trend of smart cities, increasing government initiatives, and emergence of IoT.

Passenger Information System (PIS) is likely to hold the largest market share in the Smart Railways Market.

The intelligent solutions such as advanced PIS, advanced vehicle control system, and various other systems provide information regarding

CEO of Fast Future Publishing and co-editor of the book Rohit Talwar noted: “Through the growing demand for our keynote speeches on The Future of Business to corporate leaders around the world, and across all of our current and forthcoming books, it is clear that the commercial world is waking up to the true power and potential of AI. Every executive wants to know what AI is, how it could transform business, how far and how fast it could develop, and what the potential economic, political, social, and ethical implications, opportunities and challenges might be.”

CEO of AI Business and co-editor of the book Georgios Kipouros said: “Since 2014, AI Business has been the pioneer in highlighting the transformational impact of artificial intelligence in the corporate world. Through the world’s largest online community and events focused on AI for business, we are engaging with the thought leaders that are enhancing human productivity through implementation of AI technologies. This book, the first one on this topic, will be a milestone in deciphering the future of AI-powered organisations.”

The intention is to provide a diverse set of perspectives on where the technology is going, how it is being deployed in business today, and how the capabilities, applications, and impact of AI could evolve over the next 3-10 years. The book will present case study experience, insights, and visionary thinking from end users, technology vendors, professional service firms, researchers, and those with a deep interest in the field.

Additionally, we’re hopeful this will allow us to both recruit and retain the best and brightest in our field.”

The question remains, however, how exactly do you achieve a higher level of efficiency in fewer hours? The answer, again, is simpler than one might think. An average of 40-50% of a typical eight-hour work day is wasted on coffee breaks, water cooler chit-chat, meal breaks, and checking personal emails and social media. This estimate doesn’t even factor in additional time-killers such as fantasy football, or office social events. Allow for the afternoon dip in energy, and the tendency to push new projects to the next day, and you are looking at roughly three to four hours with a drastically reduced rate of employee productivity.

The five-hour workday eliminates all the nonsense by asking employees, quite simply, to put forth a solid five-hour block of purposeful, productive activity. In return, they are free to spend the rest of the day doing whatever they wish - spending time with the family, driving carpool, surfing, golfing, or simply catching a few winks. By reducing office hours, without diminishing the expected productivity, efficiency is actually increased. Rather than limiting the expectation of work output, the concept simply ensures that the same work gets accomplished in less time.

There will of course, be times when customers require extra assistance, or when busier times of the month come around, and during those instances, employees will be expected to forego the fivehour baseline, and work until the job is done. The hypothesis is that employees who are made to feel as though their time is valuable will be more than willing to go the extra mile for the company when they are called upon to do so.

Blue Street Capital, LLC is a technology financing and equipment leasing firm based in Huntington Beach, CA. Their mission is to help their customers grow their businesses by providing financing solutions for technological needs.

the real-time position of a vehicle. The well-grained information serves as input data for refined production schedules, and improved logistics. The growth of PIS solution is also attributed to the increasing globalisation and need for advanced transportation infrastructure.

Rail analytics system expected to grow at the highest CAGR during the forecast period

The market for rail analytics would witness a major growth owing to the rise of demographic growth and hyper-urbanisation. In addition to that, the cloud-based services, analytics, and mobile Internet technologies demand are increasing due to their efficient IT management and reliable security environment.

Europe expected to hold the largest market share in the Smart Railways Market

As per the geographic analysis, Europe is likely to benefit from its technological advancements and followed by high usage of big data analytics, predictive and sensor analytics across all the railways industry. The planned investment to improve urban transport and traffic infrastructures in France and the UK expected to drive the European railway transportation market.

Brexit Could Unleash British Ports, Boosting UK Manufacturing, Trade and Regional Growth

Brexit provides a new trade opportunity for Britain: the creation of Free Ports.

EU law has long held back the potential of British ports. In The Free Ports Opportunity (a new report published by the Centre for Policy Studies on Monday 14 November), Rishi Sunak, MP, shows how Brexit would bring an end to this, allowing the introduction of Free Ports across the nation. Already successful in the US, Free Ports would provide a fast response to Brexit that would increase manufacturing output, reinvigorate the North and promote trade.

Free Ports are areas that, although inside the geographic boundary of a country, are considered outside the country for customs purposes. This means that goods can enter and re-exit the port without incurring usual import procedures or tariffs - incentivising domestic manufacturing. • Free Ports could create more 86,000 jobs for the British economy if they were as successful as those in the US. • Free Port jobs would mainly be created in areas outside London where economic need is higher. Of the UK’s 30 largest ports, 17 are in the bottom quartile of Local Authorities when ranked by the ONS’s Index of Multiple Deprivation and three quarters are in

“below average” Local Authorities. • Leaving the EU will enable Britain to capitalise on the Free Port opportunity. Today, the EU Customs Union and EU State Aid laws make this almost impossible. • Free Ports have a broad appeal that could command bipartisan support, allowing the policy to act as a rapid response to Brexit. • A Free Ports policy is fundamentally simple and is supported by a wealth of international precedent - making implementation possible over a short timescale. • Ports are already a vital strategic asset for the UK economy, accounting for 96% of all trade volume and 75% of trade value. • A Free Ports programme would build on an existing UK strength:

Britain’s port infrastructure is world class, and the UK ports sector is already the second largest in Europe.

MP Rishi Sunak commented: “Upon leaving the EU, Britain will find itself with more opportunities for economic innovation than at any time in almost 50 years. As the date of our departure draws closer, it will be the responsibility of Government to ensure Britain is not timid in seizing those opportunities. Foreign Trade Zones are flourishing all around the world - except in the EU. Post-Brexit they could play an important role in signalling Britain’s openness to the world, as well as reconnecting the nation with its proud maritime history.”

James Cooper, Chief Executive, Associated British Ports (the UK’s largest port owner), noted: “Ports are key to the nation’s trade and many offer ideal locations for new manufacturing. They should be front and centre of an industrial strategy to boost exports and re-balance the economy. This report is an example of the creative and ambitious thinking that should underpin such a strategy, maximising the potential of our ports to promote export-led growth and helping forge a prosperous future post-Brexit.”

Government Gives UK Businesses £57m Boost to Bring Ideas to Market

A new funding boost of £57.5 million was announced for the UK’s energy and infrastructure, biomedical and quantum technology sectors by Business Secretary Sajid Javid at the first inter-ministerial group on business engagement.

Chaired by the Business Secretary, the meeting brought together ministers from across government to discuss issues and challenges facing businesses in all sectors, and how government could support them following the outcome of the EU referendum, including creating opportunities for investment and trade. It was agreed at the meeting that government needed to “speak with one voice” to engage and deal with “immediate investment risks and domestic policy issues”. Meeting every two weeks, ministers recognised they all need to work together to support businesses and “turbo-charge our export efforts”.

At the meeting, Sajid Javid also announced the immediate creation of a new £57.5 million fund to help boost innovative businesses across a range of sectors. The best ideas will compete for funding to develop new sustainable energy and transport solutions, bring new healthcare advancements to market and drive forward commercial advances in quantum technology (used in electronic devices such as clocks and computers).

Business Secretary Sajid Javid said: “Creating opportunities for businesses to thrive in the UK is essential for increasing productivity, creating jobs, and boosting our economy. That’s why government is working with businesses across all sectors to ensure they have the support they need to grow now and in the future.

“Part of our success will be to help propel innovative UK business even further - not only do our world-leading innovators and research base attract foreign investment, their ideas go on to improve the lives of millions of people. Whether tackling climate change or cancer, this new funding will help get the best ideas onto the market quicker and shows our commitment to make the UK the best place in Europe to innovate, set up and grow a business.”

How to Minimise Massive Turnover of IT Professionals

Smaller but more-frequent promotions are key to minimising the high turnover of IT professionals, said Alain Pinsonneault of McGill University’s Desautels Faculty of Management.

IT professionals are far less likely to leave a company when their chances of promotion are higher, yet businesses cut back on these to avoid the costs of large salary increases. Therefore, smaller but more frequent promotions increase employee retention while keeping costs low.

The research, co-authored by Frank MacCrory of Fordham University’s Gabelli School of Business, and Vidyanand Choudhary of the University of California’s Irvine’s Merage School of Business, analysed 5,704 IT professionals at a North American-based systemsintegration and consulting firm with offices in more than 100 cities in four continents. The data was drawn from HR records over a five-year period from 2005 to 2010.

Mr Pinsonneault noted: “A key factor in the retention of IT professionals is creating a ‘promotion ladder’ within a firm. This allows for employees to aim for smaller, more frequent promotions, and spares many from the dissatisfaction of losing out on the larger financial benefits of elusive, coveted promotions - a shock which is likely to push them to move on from the company. This can be accomplished either through marginal adjustments to existing jobs or by inserting new levels into the job ladder.

“For businesses wishing to decrease staff turnover without affecting their profit, offering other benefits at each step on the ladder can be seen as a small investment into avoiding the high costs of replacing employees. Take, for example, the SAS Institute’s retention strategy of spending $6,000 to $8,000 on perks per employee to prevent $50 to $70 million in replacement costs.”

The researchers add that industries with low turnover rates are better served by motivating employees with large but infrequent promotions.

PM: UK Remains at Forefront of World Aerospace as New Investment and Jobs are Announced

£365m funding announced for new UK aerospace research and development projects and major partnership with Boeing to create 2,000 jobs in the UK.

The Prime Minister has announced a new strategic partnership between Boeing and the UK, as well as nearly £400m for new aerospace R&D projects, ensuring we remain a global aerospace industry leader.

Ahead of the Prime Minister opening the Farnborough air show, Boeing has confirmed that the company will create 2,000 new jobs in the UK and increase their R&D spending.

Boeing and the government intend to work together to build a new £100m P-8A operational support and training base at RAF Lossiemouth in Scotland, creating more than 100 jobs.

To ensure the UK’s continued position at the forefront of global aerospace, a further £365m worth of aerospace R&D projects have been approved. These are jointly funded by industry and government. These are part of the work of the Aerospace Growth Partnership which will publish a new strategy at Farnborough, setting out plans to maintain the UK aerospace sector’s leading position. This includes a new supply chain competitiveness charter signed by 11 major companies across the aerospace sector.

The Prime Minister said: “Whatever uncertainties our country faces, I want the message to go out loud and clear: the UK will continue to lead the world in both civil and defence aerospace. We aren’t just open for investment: we are a place the global aerospace industry wants to do business - as Boeing’s long-term partnership with the UK proves. “It’s also important to put government investment where it counts. That’s why we are jointly funding the new R&D fund with the aerospace industry and why I’m pleased we have signed the contract for nine new P8 Maritime Patrol Aircraft for the Royal Air Force, underlining the UK’s commitment to spending on vital defence.”

The Business of Fatigue

By Dominic Irvine, Founding Partner of Epiphanies LLP

Have you ever had that feeling when exercising that you simply can’t do any more? Your body has nothing left to give? Your muscles ache to the extent that even small movements are uncomfortable? If you could do more, you would, but you can’t? You, like many others could be forgiven if you believed that the constraining factor on your performance is your physical fitness. It turns out that’s not quite the case. The evidence emerging from research is that mental fatigue is the controlling variable in physical performance rather than purely physical factors. Your tolerance for exercise is impacted by how mentally tired you are.

Understanding this may go some way to explaining why most of us who work in business struggle to find time to do the recommended amount of exercise per week - it’s not that we are physically incapable but that we are too mentally fatigued to perform physically. It helps make sense of why after something seemingly inactive as flying can leave us needing to rest rather than wanting to exercise - the stress of travelling has been mentally tiring.

When we are tired we will default back to our habits and if these are bad habits, like reaching for the bottle of wine rather than our trainers, then we will have a glass of Chateau “Something Nice” rather than a run. As with most things, it’s a bit more complex than this. Your willingness to push yourself is a function of your perception of how much effort is required and the benefit from expending that effort. The point at which the anticipated benefit is exceeded by the effort required is the point you will probably stop. For example, you get up before breakfast, jump into your running gear and open the front door to find it’s raining hard. If you are training for a marathon you will probably head out the door and do your session. If, on the other hand, you have no event and running is simply something to do to keep fit, you may well go back to bed. For the marathon runners, the benefit exceeds the amount of work required. For the keep-fit jogger, the effort required does not justify the return.

While in business we are not elite athletes, nor trying to be, work still requires physical effort, be that standing to deliver a presentation or walking around the factory floor to check in with team members. Doing these things may be physically and mentally draining. Undertaking physical activities can impact our mental capacity - we all know the sensation of being too tired to think properly. So we need to be “fit enough” to be able to cope with the physical demands our job places on us in order to be able to cope with the mental fatigue that would otherwise constrain our performance. If we are fit to begin with, the erosion of physical capacity brought on by mental fatigue will impact us less. And, if we see a real value in doing what we are doing, we will persist for longer.

In addition, there are things we can do to help reduce or manage mental fatigue. Research evidence supports the use of techniques such as goal setting, imagery self-talk and other tools can help impact our ability to sustain effort.

All of this is further evidence that in the future, the way we manage and reward employee performance will be what they deliver, how they deliver it and the things they do from a whole system perspective to ensure they are operating at their optimum - such as getting enough sleep, eating healthily and doing enough exercise. This is more than an annual health check, as all this does is provide a single snapshot of the things you have already done to help or hinder your current physical and mental performance. Whereas being able to quantify the time spent sleeping, resting, what you eat and the exercise you have done day by day, enables a value to be attributed to these things, as well as spot the signs early enough of the onset of fatigue and manage it. A healthy person not only suffers less from absenteeism, stress related issues, heart disease and type 2 diabetes (to name just a few factors), they also have the potential to be more profitable employees.

Mental resilience is the hot topic doing the rounds. In essence, it is your ability to cope with sustained levels of stress. For me this is akin to administering first aid. Far better to understand the psychobiological relationship between fitness and fatigue and develop the physical and mental capability and capacity to convert a wearisome workload into a doable day job, thus putting resilience into its rightful place as a stopgap solution until the root causes have been addressed.