Analysis of Security Risks Brought by Digital Transformation and How to Address Them

Why Is Security So Important in Digital Transformation?

The shift from paper-based processes to digital ones means that a company begins to generate and store exponentially more data. At the same time, this data starts flowing between different systems — and every such connection becomes a potential point of attack. Since digital transformation connects the world of IT (information technology) with the world of OT (operational technology), it creates a complex environment where the failure of a single component can impact the entire production process.

What Threatens Companies That Neglect Security?

• ⚠️ Leakage or loss of sensitive data (customer information, production know-how)
• ⚠️ Virus or ransomware attacks leading to operational paralysis
• ⚠️ Production shutdowns and financial losses
• ⚠️ Damage to reputation and loss of trust from business partners
• ⚠️ In extreme cases, even emergency situations impacting human safety

What Are the Most Common Security Risks in Digital Transformation?

❌ Connecting outdated systems to the network

Digitalization often begins by connecting old devices to the network to collect data. However, legacy PLCs, computers running Windows XP, or unsupported applications pose a major risk. They lack security updates, don’t support modern encryption, and often operate on outdated communication protocols.

In practice, this means that even a single such element can serve as an open gateway to the entire network. Therefore, every connection of an older system should undergo a security assessment by the IT department, or the entire system should be migrated or modernized to meet current standards.

❌ Direct connection of machines to the internet

It is common practice for machine manufacturers to enable remote diagnostics so that their technicians can quickly resolve malfunctions or update the system’s software. The problem arises when such connections are established without the knowledge of the IT department. This creates so-called “backdoors” through which anyone—whether accidentally or intentionally—can access the system.

If remote access is necessary, it should always be time-limited, encrypted, monitored, and performed only with IT’s approval.

❌ Unsecured Data Transfer to the Cloud

As part of digitalization, cloud services are increasingly used for data collection and visualization. However, the customer (in this case, the manufacturing company) does not always know where their data is being sent or how it is protected. If communication is not encrypted, or if a shared account with a simple password is used, the data may become publicly accessible.

It is equally risky when a supplier operates the cloud outside the EU without informing the customer. Every cloud solution should therefore include encrypted communication (HTTPS, VPN), individual user access, and clearly defined data ownership and server location. Without these measures, the company risks losing control over information that may be strategically sensitive.

❌ Outdated Firmware and Software

Many companies postpone updates with the argument that “the system works fine, so there’s no need to touch it.” However, outdated software and firmware are among the most common entry points for cyberattacks. Older versions often contain known vulnerabilities that are publicly available online. Attackers actively search for and exploit these weaknesses without needing physical access to the system.

The solution? Implement a regular update management process, ideally within a test environment to verify compatibility before deployment. Modern platforms such as Ignition allow fast, seamless updates without downtime — often completed within just a few minutes.

❌ Weak Access Management

Shared accounts, simple passwords, and the lack of login records are still common in many organizations. When an incident occurs, it’s often impossible to determine who made a specific change and when. In addition to the risk of unauthorized access, this also makes post-incident analysis and remediation much more difficult.

Modern systems should therefore use centralized identity management (e.g., Active Directory, SAML, OAuth, OIDC), two-factor authentication, and detailed logging of all user actions. The fundamental principle should be “least privilege” — every user has access only to what they truly need to perform their role.

❌ Insufficient Collaboration Between IT and OT

IT and OT are two very different worlds. The IT department protects the company’s network, servers, and data — their top priority is data confidentiality. OT (operational technology), on the other hand, ensures the smooth running of production, where the main priority is system availability. Without proper communication between the two, a gap emerges — one that attackers are quick to exploit.

IT teams often lack understanding of industrial protocols and production logic, while OT teams are not always familiar with cybersecurity principles. The key is to establish a shared framework of security policies, ensuring that IT and OT collaborate already at the design stage of digital solutions, not only when incidents occur.

❌ Human Factor

No firewall or antivirus can prevent human negligence. Clicking on a phishing email, sharing login credentials, or being inattentive while working with a system — these are among the most common causes of cybersecurity incidents. Attackers today use sophisticated social engineering techniques and often target maintenance staff or system administrators directly.

That’s why regular training and awareness programs are just as important as technical safeguards. Every employee should know how to recognize suspicious communication, handle passwords securely, and report unusual or potentially harmful activity to the right person.

How to Prevent Security Risks?

✅ Security as Part of Every Project

Cybersecurity should never be treated as a separate chapter that comes only after a project is completed. On the contrary, every digital project should include a security analysis from the very beginning. Customers should require their supplier to provide a system interconnection diagram detailing interfaces and communication protocols. This allows the IT department to evaluate the security of the solution before deployment, not after an incident occurs.

✅ Regular Updates and Continuous Monitoring

Every system should be continuously monitored and regularly updated. It’s important to track not only server status, but also the availability of connected devices, firmware versions, and communication changes. For example, Ignition allows a quick update to the latest version without downtime — the system can be updated and secured within minutes.

✅ Access Rights Management

No generic usernames, passwords, or shared accounts. Each user should have their own account with clearly defined permissions, following the “least privilege” principle — access only to what is absolutely necessary. Ideally, identity management should be centralized (e.g., Active Directory, LDAP) to ensure full traceability of who accessed the system and when.

✅ Training and Awareness

Security is not only about technology — it’s mainly about people. Employees should understand the basics of cyber hygiene and know what to do in case of an incident. Equally important is to train IT teams in the field of OT, so they understand the specifics of industrial technologies and can respond appropriately to differing priorities (AIC vs. CIA model). All types of software, interfaces, and communication protocols should be evaluated and approved before being deployed.

Case Study: The Cyberattack That Halted Production at Jaguar Land Rover

At the end of August 2025, automotive manufacturer Jaguar Land Rover faced a massive cyberattack that disrupted its production facilities worldwide — including the plant in Nitra, Slovakia. For safety reasons, the company had to immediately shut down several internal IT systems, including those directly controlling production.

The result was a complete production stoppage and subsequent delays in vehicle deliveries across the entire supply chain. In addition to the production downtime, a data breach was also reported, turning the incident into a complex crisis — technical, logistical, and reputational.

Although the exact causes of the attack were not publicly disclosed, the case clearly demonstrated how fragile interconnected digital infrastructures can be. A single unprotected interface, missing update, or weak access point can have global consequences.

This event serves as a warning for every industrial enterprise undergoing digital transformation. Cybersecurity is not an add-on to digital transformation — it is an essential part of it. For digitalization to truly deliver value, it must be secure. Companies that address security from the very beginning not only minimize the risk of incidents but also strengthen trust among their customers and partners.