1. Rebalancing Defense Science and Technology to Security Priorities in the Asia Pacific Region Herman Finley 4 March 2013 Information Technology (IT) and Cyber Security

2. Agenda Rebalance and IT in context Regional IT/Cyber context Regional IT/Cyber Security Issues Potential Impacts of rebalance

3. 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 Trends Shaping the Next 20 Years Information/Cyber Big Data Internet of Things Smart Manufacturing Robotics/Artificial Intelligence Nanotechnology Bio-medical 4  Exponential Growth  Massive Integration

5. 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 200120102016 PCs/100 people4+1930+ Internet/10052436+ Mobile phones1170110 Economist, Economist Intelligence Unit Report, “Asia Competition Barometer: Information Technology Services”, 2012, www.managementthinking.eiu.com/.../Asia%20Competition%20Barometer%20IT%20Services.pdf

6. Internet Users per 100 Economist, Economist Intelligence Unit Report, “Asia Competition Barometer: Information Technology Services”, 2012, www.managementthinking.eiu.com/.../Asia%20Competition%20Barometer%20IT%20Services.pdf

9. 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

10. 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

11. GE Report: Industrial Internet 0 $10,000 $30,000 $50,000 $70,000 $90,000 $110,000 Billions 2005 $

12. 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

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

14. 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

15. 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

16. 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

17. Rebalancing Defense Science and Technology to Security Priorities in the Asia Pacific Region Herman Finley 4 March 2013 Information Technology (IT) and Cyber Security