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Fachhochschule des Mittelstands Fachhochschule des Mittelstands
DE

Focus topic: Cyber security and digital innovations

First multi-university institute of the Fachhochschule des Mittelstands (FHM) and the University of Gloucestershire (UK)

With funding from the district of Düren, the Fachhochschule des Mittelstands (FHM) and the University of Gloucestershire (Cheltenham and Gloucester, UK) have established a joint institute for cyber security and digital innovation in Düren. The FHM has a long-standing collaboration with the University of Gloucestershire (UoG), which is one of the UK's leading “cyber security universities” in research and development, also in collaboration with British government organizations, as well as studying and teaching. The district of Düren - with its medium-sized industrial structure, international orientation, prospects for structural change and geographical location in the city triangle between Aachen, Cologne and Düsseldorf - is to be developed as a nucleus for applied cyber sciences with a unique approach and international character (multi-university approach). As part of a three-dimensional approach, the business areas of education, research and business support will be pursued in particular.

Institute for Cyber Security

There are over 700,000 SMEs in NRW, of which around 12,000 are in the Düren district, and the trend is continuing to rise. The digital transformation in the economy and society presents companies with new and far-reaching challenges, the core of which lies in the global digitalization process. For the companies based in the district of Düren, the new institute offers local academic training in the field of data protection and security that is tailored to their specific needs, an important locational advantage and also increases the quality and scope of local educational opportunities. The institute will address the following topics:

  1. Development of a cyber nucleus for structural change in the Rhenish mining area
  2. Development of a business-oriented, regional digital innovation and security concept
  3. Improving digital innovation and security skills
  4. Reducing the “skills shortage” at all levels 5
  5. Promotion of security innovations in SMEs
  6. Contribution to regional economic growth.

Identity-forming core of the institute

The complexity, interconnectedness and speed of the technological, socio-economic, psychological and explicitly security-related factors are of central importance. In order to bring about sustainable solutions, every single expert, specialist and manager, managing director and entrepreneur, trainee and student must understand the problem and accept the real challenge. However, in everyday business life, the “other” problems always take priority. If this is true to some extent, it would explain why digitalization in SMEs is progressing far too slowly and why two thirds of companies believe they are immune to cyber attacks.

Current FHM studies from NRW and a long-standing collaboration with the leading cyber-related University of Gloucestershire, UK, illustrate the problems in the digital transformation and cyber security of North Rhine-Westphalian companies.

In the new global “cyber-digital business”, security must be constantly reinvented and implemented. The best way to achieve this is to network knowledge and skills from inside and outside - seen from a different perspective - as part of a German-British cooperation. To this end, the Institute for Cyber Security and Digital Innovation is to be developed and established as the nucleus for the foundation of a university location in the Düren district for applied cyber sciences.

Security and digital transformation are among the greatest challenges of the present and future.
The cyber security sector has seen significant growth in recent years, but there is a large gap between supply and demand for qualified and competent specialists and managers. The qualitative challenge lies in the attractiveness and reputation of the job: how can security, especially cyber security, be guaranteed in the digitalization of the economy and society? The institute aims to deliver the following results:

  • Development of a cyber nucleus for structural change in the Rhenish mining area
  • Development of an economy-oriented, regional security concept
  • Improving security skills - reducing the “skills shortage” at all levels
  • Promotion of security innovations in SMEs
  • Contribution to regional economic growth

The digitization process of companies varies and is progressing at different speeds. Based on the companies' self-assessment, the digitalization index for SMEs in NRW 2020 measures the status of digitalization on a scale of 0 to 10, with 0 representing the minimum and 10 the maximum. The statements from the assessment can be assigned as follows. The overall index for all companies in NRW is 4.2 out of 10, meaning that the level of digitalization can be regarded as “partially” digitalized. The diagram shows the index values for the individual digitalization areas of the three dimensions:

The overall level of digitalization is far too low. Almost three quarters of all companies are not or only slightly digitized. Against the backdrop of the same study from 2018, there is no progress, but rather a standstill. There is no evidence of a general surge in digitalization triggered by the pandemic. Greater digitalization and virtual collaboration are only taking place in large companies and digital-savvy, industry-related companies. The self-assessment of IT security (6.65) hardly seems to stand up to reality. Despite the expansion of mobile working during the pandemic, 60 percent of companies have not adapted/expanded their cybersecurity systems for mobile working or issued corresponding guidelines.

Further information on the study results can be found here: Digitalization Index NRW 2020

The advancing digitalization of all areas of life offers numerous new opportunities for North Rhine-Westphalia as a powerful and innovative business location. However, this development is also associated with increasing dangers and threats. Companies must increasingly expect to fall victim to industrial espionage and cyber attacks by foreign states, competing companies or criminals operating via the internet. For this reason, corporate security and the protection of irreplaceable know-how are increasingly becoming the focus of both corporate responsibility and the government's task of protecting the economy. The North Rhine-Westphalian Ministry of the Interior - Police and Office for the Protection of the Constitution - is carrying out intensive preventative work to ward off industrial espionage and cyber attacks.
The aim is to enable companies to recognize potential threats at an early stage, avert them in good time and take the necessary protective measures. The aim is to provide the best possible protection against the loss of valuable, often existential trade and business secrets.

The “Situation Report Economic Protection NRW” provides a representative and comprehensive overview of the status quo of corporate security for SMEs in North Rhine-Westphalia. The situation report has a dual effect. On the one hand, it provides those responsible for the security partnership with important information for optimizing business security. Secondly, it helps the approximately 717,000 small and medium-sized enterprises (SMEs) in North Rhine-Westphalia to assess and categorize themselves.
 

Key findings of the 2019 business protection situation report

  • In the 2019 reporting year, companies achieved the highest index values in the dimension of cyber attack protection with an overall value of 6.37. Access protection stands out particularly positively here with a value of 7.18.
  • With an index value of 5.24, the companies are in an average position in terms of personal protection measures. The responsibilities indicator is particularly noteworthy here with an index value of 7.25. The definition of responsibility for security issues therefore appears to be the most likely to be implemented by the companies.
  • The physical protection of buildings shows a low index value of 3.82 for companies in NRW. In particular, the external protection of the company premises with a value of 3.28 indicates that the companies have 'rather few' protective measures in place.
  • With a value of 3.82, the dimension of organizational protective measures is one of the two poorer rated dimensions. It can be seen that companies take 'rather few' measures with regard to emergency and crisis concepts. With an index value of 3.13, the emergency and crisis concepts indicator is the one with the lowest score in the economic protection situation report.

Further information on the study results can be found here: Economic protection situation report NRW 2019

 

The development of future skills, cyber-digital and cyber security qualifications and competencies is currently the biggest hurdle for further development in the SME sector in NRW. This applies both to the strategic digital and global orientation of companies and to the employability of the urgently needed high potentials who are capable of driving the process forward. Appropriate institutional partners and networks are required to facilitate this kind of know-how development.
FHM has a long-standing and excellent collaboration with the University of Gloucestershire (UoG), which is one of the UK's leading cyber security universities in terms of research and development as well as teaching and learning.
 

The cyber pedigree
 

Five things you need to know about 'Cyber' at the University of Gloucestershire:

  1. The courses prioritize employability and produce employable graduates.
  2. Graduates contribute to the growth of Gloucestershire's intellectual capital.
  3. The University of Gloucestershire is the first university to launch the Cyber Technology & Professional degree.
  4. The University of Gloucestershire is involved in a wide range of strategic and high impact projects.
  5. The University of Gloucestershire has an ever-growing research profile
    1. High value random numbers in cyber security systems
    2. Security in physical IoT cyber environments
    3. Intelligent malware detection
    4. Artificial intelligence and physical systems
    5. Ethics, privacy and human behavior in cybersecurity

The collaboration in a joint Think Tank for Applied Cyber Sciences of the University of Gloucestershire with the Cyber Institute Düren in a center for cyber security and digital innovation for SMEs would provide a forward-looking impetus for security and digitization in the North Rhine-Westphalian economy.

Services offered by the institute

The institute's services include education, research & knowledge transfer, and business support & consulting.

The Fachhochschule des Mittelstands (FHM) and the University of Gloucestershire (UK) are planning to offer their study programs focused on the digital economy and cyber security in Düren.

The University of Gloucestershire (UoG) is aiming to launch its Bachelor's program in Cyber and Computing Security.
The Fachhochschule des Mittelstands (FHM) is offering a Bachelor's degree in Digital Business Management. Another strategic focus of the institute is the implementation of a test center and a demonstration zone for cyber technologies.

Research & knowledge transfer with national and international universities and partners is the innovation core of the institute. The aim of the institute is to collaborate with other universities (national and international) and companies from the public and private sectors on cyber projects.

The FHM and its partners from the UK have already been conducting cyber-related research for years. Work with companies on knowledge transfer partnerships has also been taking place for some time. These activities are to be expanded and developed as part of the institute's work.

Business Support & Consulting for security and digital solutions, InnovationHub for growth and start-ups are the company-related offerings.
The center will be the place for companies to go for cyber and digital solutions - a GrowthHub.
The center will offer consulting, testing and demonstration opportunities as well as services to develop solutions that support business growth. The center will also be an innovation hub for start-ups.

Challenges for companies in NRW

With its digital strategy, North Rhine-Westphalia has already created a roadmap to the digital future and is a pioneer in the field of digitalization. However, as the digitalization of companies progresses, there is also a growing risk of cyberattacks.

Cyber security must be created in the process of the digital transformation of the economy and society. Security concepts must develop and deliver pragmatic and innovative solutions for security-related challenges facing people, the economy and society. Security must be developed as a sustainable concept for thought and action. The focus must be on implementation in business and society.

  • Cyber security will be the key to a digital, prosperous economy and democratic society.
  • Security is one of the greatest challenges of the present and future.
  • Security puts people at the center. It is the greatest need in the current era of digitalization, globalization and uncertainty. The pandemic is also exposing people's essential security needs in everyday life.
  • Security in business and society, in technology and science, at home and in cyberspace, in terrorism and in international crises is exposed to multiple threats.
  • Security is a state of being safe, protected from danger or harm.
  • Security around common “human rights, freedom, democracy, the rule of law and international law” are the focus of the White Paper. The future topics are “early crisis detection”, “hybrid warfare” and “cyber security”.

Security concepts are less about “protection concepts” to ward off threats to “data”, “work”, “health”, “consumers”, “the environment”, “technologies” or even “religions”. “Digital data” such as ‘0’ and ‘1’ cannot be protected at all. Many “protection concepts” have taken on a life of their own. Data protection cannot protect against “hackers”. In principle, protection is not possible because they are always one digital “move” ahead. If, in borderline cases, the “protection of data” is more important than the safety of people's lives during the coronavirus pandemic, then “protection concepts” will not help.
That's why we need “security concepts” in which people are constantly learning how to handle data positively and professionally. If “passwords and systems” only “annoy” users when they access them, this does not create security, but defense. In the future, there should be better security options than the “password chaos”. Security concepts want to actively influence and provide new innovative solutions. Security concepts must grow in line with global and digital developments. With cyber security, we are in the “global cyber-digital business”.

Start-ups today are cyber-digital. In the digital transformation process, companies must be growth-oriented, global, sustainable and capable of learning. Companies only have a future if they become digital. To do this, they need to transform their existing business models. It sounds simple, but it is not, and the demise of many traditional business models is evident. The vinyl record as the core of the music industry has become as obsolete as the landline telephone or cash withdrawals from bank tellers. Cash has long since ceased to play a role in global e-commerce. And when YouTube was founded in 2005 and posted small homemade videos on the Internet, nobody believed that the business model of a billion-dollar company would take off.

One goal of digitalization is autonomous, self-thinking and self-learning systems or machines, such as “robots” as synonyms for developed devices that can replicate human capabilities. This has many advantages. The boundaries of reality are shifting. In future, “real reality” can be both “real” and “truly digital”. This transition is already fluid today with the use of augmented reality and virtual reality with AR/VR glasses, iPhones, headsets, apps, in games and simulations. In everyday reality, for example, these are new, digital high-tech products, technologies or services that enable customers to experience and understand products and services virtually. The networking of company data creates new perspectives and analyses of the company. At the same time, these new technologies are creating new services for start-ups and SMEs that can operate worldwide and are now working at the same conceptual and technological level. Examples include serious games and artificial intelligence (AI), which can be developed and used worldwide and across borders.
The digital economy is networking ever larger areas of the economy and social life. Today, more than 20 billion devices, computers and machines are said to be connected via the Word Wide Web. In ten years' time, there could be half a trillion networked systems on the Internet. By communicating and networking digitally around the world, companies, countries and people are creating a digital engine that can ensure growth and prosperity in the future. Even if the business models were not called that in the past, there were typical economic models. In the 18th century, agriculture, trade and commerce were the engine; in the 19th and 20th centuries, industry and services with SMEs as hidden champions were the economic core; currently, the new “cyber-digital systems” will create the future digital champions.
What will be new is the extreme speed of digital diffusion with all its entrepreneurial opportunities, but also with disruptive collapses. The pandemic experience is currently giving digitalization a further boost. A business model describes the structure and key factors that give a company its identity and economic success. Every company makes a “promise of value and benefits to its customers” with its products, goods and services; these goods are produced and sold in the value creation process, and the success is redeemed in the revenue model. Cyber-digital business models must answer whether the start-up, the family business, the market leader in the SME sector, the hidden champion and the global player are sufficiently digitalized. The competition for the cyber-digital future of companies began a long time ago. Data is the raw material of the 21st century. Big data & artificial intelligence (AI) are at the heart of the digital transformation of growth-oriented, global SMEs in the worldwide ecosystem. But big data can no longer do without cyber security.

The future of business and society is digital. The digital transformation is taking place from analog to digital companies. Companies only have a future if they are cyber-digital, global, growth-oriented, sustainable and capable of learning. From the perspective of business models, cyber-digital business encompasses both the
 

  • "Cyber Physical Systems (CPS), the 4th Industrial Revolution, Industry 4.0 and the Internet of Things (IoT) as well as the Cyber Synthetic Biological Systems (CPS).
  • “Cyber Synthetic Biological Systems (CSBS)”, the 5th Industrial Revolution of the 21st century, with the “Internet of Living Things” (IoLT)
  • Cybersecurity will be the key to a digital, prosperous and democratic society. Security concepts must be at the beginning of digitization in companies, not at the end.
     

The digital vulnerability of the economy and society makes them a key target for cyber attacks. Hackers attack networks and systems every day. Almost every second company is currently exposed to cyber attacks. They are “victims” of criminal hacker attacks. Nevertheless, most entrepreneurs and CEOs believe that only the others are affected. A serious misperception. State and non-state actors alike are among the perpetrators of these attacks. Their methods are diverse and the threat scenarios are increasing: even cyber attacks on states and their critical infrastructures have long since ceased to be fiction.

Your contact person

Prof. Dr. Dr. h.c. Volker Wittberg

Vice President Research & Development, Vice President International Affairs (acting)

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