Rebalancing Defense Science and Technology to

Security Priorities in the Asia Pacific Region

Herman Finley4 March 2013

Information Technology (IT) and Cyber Security

Agenda

• Rebalance and IT in context

• Regional IT/Cyber context

• Regional IT/Cyber Security Issues

• Potential Impacts of rebalance

Context of Rebalance

• Global shift of power towards Asia– Economic, political, military

• US shift is whole of government• China? Yes, but much more• US economy• Other “rebalances”

4

Key Technology TrendsShaping the Next 20 Years

• Information/Cyber• Big Data• Internet of Things • Smart Manufacturing• Robotics/Artificial

Intelligence• Nanotechnology• Bio-medical

Exponential GrowthMassive Integration

Asia’s IT Sector

• “Asia’s IT services sector has been expanding rapidly, in line with the region’s stellar economic growth.”

• Why the growth?– Globalization—movement of IT jobs to Asia– Growing demand from Asian companies– Growing consumer demand within Asia

2001 2010 2016

PCs/100 people 4+ 19 30+

Internet/100 5 24 36+

Mobile phones 11 70 110

Economist, Economist Intelligence Unit Report, “Asia Competition Barometer: Information Technology Services”, 2012, www.managementthinking.eiu.com/.../Asia%20Competition%20Barometer%20IT%20Services.pdf

Internet Users per 100

ChinaIndia

Indonesia

Mala

ysia

Philippines

Singa

pore

Thailan

d

Vietnam

0102030405060708090

100

20102016

Economist, Economist Intelligence Unit Report, “Asia Competition Barometer: Information Technology Services”, 2012, www.managementthinking.eiu.com/.../Asia%20Competition%20Barometer%20IT%20Services.pdf

Cyber-Security• China—Yes, but…• US• Russia• North Korea• …

http://www.anonyops.com/uploads/1110533077_anonymous.jpg

http://infotech4you.com/wp-content/uploads/2012/11/Cybercrime.jpg

Collaborative Cyber Security ?

“The rapid pace at which cyber security threaten changes, means that no country or organization can plan and implement responses in silos.

Effective cyber security efforts require expertise that transcend national and organisational boundaries.”

Singapore Deputy Prime Minister Teo Chee Heanhttp://www.cybersecurityasia.com/Event.aspx?id=829362

GE Report: Industrial Internet

0 $10,000 $30,000 $50,000 $70,000 $90,000 $110,000Billions2005 $

GE: IT to give $15 Trillion Payoff

“GE needs a whole lot of help from other vendors, regulators, financiers and users of technology before this vision and its $15 trillion payoff can come true. This report looks like an attempt to rally an ecosystem.”

Chris Murphy, Editor, InformationWeek

http://www.informationweek.com/global-cio/interviews/what-ges-15-trillion-industrial-internet/240142639?pgno=1

IT/Cyber-Security:An emerging Paradigm Shift?

http://buildsocialbiz.blogspot.com/2012/12/the-complexities-of-microsofts.html#!/2012/12/the-complexities-of-microsofts.html

http://tech-wonders.blogspot.com/2012/08/how-cyber-attackers-and-criminals-use.html

Linear Piece by Piece

http://blogs.msdn.com/b/zen/archive/2010/08/10/the-new-world-of-emergent-architecture-and-complex-adaptive-systems.aspx

InteractiveHolistic

Regional IT/Cyber Security Issues

• Supporting economic growth• Increasing digital interdependence• Increasing cyber activities• Maritime domain awareness• Security of space operations• Technology achievement gap• Technology policy dilemmas

Technology Policy Dilemmas

• Human side: Need to collaborate/need to “win”– What do we share with whom?– How do we manage trust?

• Technology side: Need to go faster to stay ahead/Already going so fast that policy can’t keep up– How much control do we give machines?– How do we design man manageable systems?

Adapted from Chris Murphy: http://www.informationweek.com/global-cio/interviews/what-ges-15-trillion-industrial-internet/240142639?pgno=1

What might the US Rebalance mean in the IT/Cyber arenas?

• Economic Benefits– Access to Top-level technology– If we are willing to share

• Reassurance/Stability– If we demonstrate commitment– If we are willing to build trust

• Soft leadership– If we are willing to collaborate– If we are willing to negotiate

In sum:

Policies that are transparently and

convincingly win/win for the US and

the region

Rebalancing Defense Science and Technology to

Security Priorities in the Asia Pacific Region

Herman Finley4 March 2013

Information Technology (IT) and Cyber Security