SolarWinds Orion, the network management product that was targeted, is used in tens of thousands of corporations and government agencies. Over 17,000 organizations downloaded the infected back door. The hackers were extraordinarily stealthy and specific in targeting, which is why it took so long to catch them—and why it’s taking so long to understand their full impact.
The difficulty of uncovering the extent of the damage was summarized by Brad Smith, the president of Microsoft, in a congressional hearing last week.
“Who knows the entirety of what happened here?” he said. “Right now, the attacker is the only one who knows the entirety of what they did.”
Kevin Mandia, CEO of the security company FireEye, which raised the first alerts about the attack, told Congress that the hackers prioritized stealth above all else.
“Disruption would have been easier than what they did,” he said. “They had focused, disciplined data theft. It’s easier to just delete everything in blunt-force trauma and see what happens. They actually did more work than what it would have taken to go destructive.”
“This has a silver lining”
CISA first heard about a problem when FireEye discovered that it had been hacked and notified the agency. The company regularly works closely with the US government, and although it wasn’t legally obligated to tell anyone about the hack, it quickly shared news of the compromise with sensitive corporate networks.
It was Microsoft that told the US government federal networks had been compromised. The company shared that information with Wales on December 11, he said in an interview. Microsoft observed the hackers breaking into the Microsoft 365 cloud that is used by many government agencies. A day later, FireEye informed CISA of the back door in SolarWinds, a little-known but extremely widespread and powerful tool.
This signaled that the scale of the hack could be enormous. CISA’s investigators ended up working straight through the holidays to help agencies hunt for the hackers in their networks.
These efforts were made even more complicated because Wales had only just taken over at the agency: days earlier, former director Chris Krebs had been fired by Donald Trump for repeatedly debunking White House disinformation about a stolen election.
Annika Hauptvogel, head of technology and innovation management at Siemens, describes the industrial metaverse as “immersive, making users feel as if they’re in a real environment; collaborative in real time; open enough for different applications to seamlessly interact; and trusted by the individuals and businesses that participate”—far more than simply a digital world.
The industrial metaverse will revolutionize the way work is done, but it will also unlock significant new value for business and societies. By allowing businesses to model, prototype, and test dozens, hundreds, or millions of design iterations in real time and in an immersive, physics-based environment before committing physical and human resources to a project, industrial metaverse tools will usher in a new era of solving real-world problems digitally.
“The real world is very messy, noisy, and sometimes hard to really understand,” says Danny Lange, senior vice president of artificial intelligence at Unity Technologies, a leading platform for creating and growing real-time 3-D content. “The idea of the industrial metaverse is to create a cleaner connection between the real world and the virtual world, because the virtual world is so much easier and cheaper to work with.”
While real-life applications of the consumer metaverse are still developing, industrial metaverse use cases are purpose-driven, well aligned with real-world problems and business imperatives. The resource efficiencies enabled by industrial metaverse solutions may increase business competitiveness while also continually driving progress toward the sustainability, resilience, decarbonization, and dematerialization goals that are essential to human flourishing.
This report explores what it will take to create the industrial metaverse, its potential impacts on business and society, the challenges ahead, and innovative use cases that will shape the future. Its key findings are as follows:
• The industrial metaverse will bring together the digital and real worlds. It will enable a constant exchange of information, data, and decisions and empower industries to solve extraordinarily complex real-world problems digitally, changing how organizations operate and unlocking significant societal benefits.
• The digital twin is a core metaverse building block. These virtual models simulate real-world objects in detail. The next generation of digital twins will be photorealistic, physics-based, AI-enabled, and linked in metaverse ecosystems.
• The industrial metaverse will transform every industry. Currently existing digital twins illustrate the power and potential of the industrial metaverse to revolutionize design and engineering, testing, operations, and training.
Across social media, a number of creators are generating nostalgic photographs of China with the help of AI. Even though these images get some details wrong, they are realistic enough to trick and impress many of their followers.
The pictures look sophisticated in terms of definition, sharpness, saturation, and color tone. Their realism is partly down to a recent major update of image-making artificial-intelligence program Midjourney that was released in mid-March, which is better not only at generating human hands but also at simulating various photography styles.
It’s still relatively easy, even for untrained eyes, to tell that the photos are generated by an AI. But for some creators, their experiments are more about trying to recall a specific era in time than trying to trick their audience. Read the full story.
—Zeyi Yang
Zeyi’s story is from China Report, his weekly newsletter giving you the inside track on tech in China. Sign up to receive it in your inbox every Tuesday.
Read more of our reporting on AI-generated images:
+ These new tools let you see for yourself how biased AI image models are. Bias and stereotyping are still huge problems for systems like DALL-E 2 and Stable Diffusion, despite companies’ attempts to fix it. Read the full story.
The global technology consultancy Thoughtworks describes organizations that can respond to marketplace changes with continuous adaptation as “evolutionary organizations.” It argues that, instead of focusing only on technology change, organizations should focus on building capabilities that support ongoing reinvention. While many organizations recognize the benefit of adopting agile approaches in their technology capabilities and architectures, they have not extended these structures and ways of thinking throughout the operating model, which would allow their impact to extend beyond that of a single transformation project.
Global spending on digital transformation is growing at a brisk pace: 16.4% per year according to IDC. The firm’s 2021 “Worldwide Digital Transformation Spending Guide” forecasts that annual transformation expenditures will reach $2.8 trillion in 2025, more than double the spending in 2020.1 At the same time, research from Boston Consulting Group shows that 7 out of 10 digital transformation initiatives fall short of their objectives. Organizations that succeed, however, achieve almost double the earnings growth of those that fail and more than double the growth in the total value of their enterprises.2 Understanding how to make these transitions successful, then, should be of key interest to all business leaders.
This MIT Technology Review Insights report is based on a survey of 275 corporate leaders, supplemented by interviews with seven experts in digital transformation. Its key findings include the following:
• Digital transformation is not solely a technology issue. Adopting new technology for its own sake does not set the organization up to continue to adapt to changing circumstances. Among survey respondents, however, transformation is still synonymous with tech, with 70% planning to adopt a new technology in the next year, but only 41% pursuing changes to their business model.
• The business environment is changing faster than many organizations think. Most survey respondents (81%) believe their organization is more adaptable than average and nearly all (89%) say that they’re keeping up with or ahead of their competitors—suggesting a wide gap between the rapidly evolving reality and executives’ perceptions of their preparedness.
• All organizations must build capabilities for continuous reinvention. The only way to keep up is for organizations to continuously change and evolve, but most traditional businesses lack the strategic flexibility necessary to do this. Nearly half of business leaders outside the C-suite (44%), for example, say organizational structure, silos, or hierarchy are the biggest obstacle to transformation at their firm.
• Focusing on customer value and empowering employees are keys to organizational evolution. The most successful transformations prioritize creating customer value and enhancing customer and employee experience. Meeting evolving customer needs is the constant source of value in a world where everything is changing, but many traditional organizations fail to take this long view, with only 15% of respondents most concerned about failing to meet customer expectations if they fail to transform.
• Rapid experimentation requires the ability to fail and recover quickly. Organizations agree that iterative, experimental processes are essential to finding the right solutions, with 81% saying they have adopted agile practices. Fewer are confident, however, in their ability to execute decisions quickly (76%)—or to shut down initiatives that aren’t working (60%).