Digitalization has become a cornerstone of competitiveness in the industrial arena, especially in the cases of small lot sizes with many variants in the goods produced. Managers of industrial facilities have to handle the complexity that comes along with Industry 4.0 in diverse dimensions to leverage the potentials of digitalization for their sites. This article describes major drivers of this complexity in current industrial automation to outline the environment of today’s challenges for managers of this technical transition—and shows how managed (...) industrial security services can contribute to stabilize the industrial system. An outlook is given to future automation scenarios as well as the major concepts involved in their protection. (shrink)

We investigate risk attitudes when the underlying domain of payoffs is finite and the payoffs are, in general, not numerical. In such cases, the traditional notions of absolute risk attitudes, that are designed for convex domains of numerical payoffs, are not applicable. We introduce comparative notions of weak and strong risk attitudes that remain applicable. We examine how they are characterized within the rank-dependent utility model, thus including expected utility as a special case. In particular, we characterize strong comparative risk (...) aversion under rank-dependent utility. This is our main result. From this and other findings, we draw two novel conclusions. First, under expected utility, weak and strong comparative risk aversion are characterized by the same condition over finite domains. By contrast, such is not the case under non-expected utility. Second, under expected utility, weak comparative risk aversion is characterized by the same condition when the utility functions have finite range and when they have convex range. By contrast, such is not the case under non-expected utility. Thus, considering comparative risk aversion over finite domains leads to a better understanding of the divide between expected and non-expected utility, more generally, the structural properties of the main models of decision-making under risk. (shrink)

Contemporary business often encompasses or aspires towards the automated, networked production of industrial goods across transnational supply chains that have many digitalized interfaces. This allows competitive operations in time, costs, and quality, which have been widely discussed. On the downside, it entails cyber threats with significant risks for society in areas including business, environment, and health. Hence, to adequately manage these risks in the emerging digital world, there is a vital necessity to raise awareness, establish, maintain, and further develop cyber-security (...) measures to ensure an appropriate level of protection along the entire value chain and supply chain. Blockchain capabilities are introduced to improve the technical and organizational basis for secured operations in industrial networks. Its advantages are explained by a simple USB-device use case, that has often been the root cause to subsequent security incidents, especially in the Stuxnet incident. (shrink)