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CSC - Ron Knode Keynote on Digital Trust from LEF '07
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1 hour, 4 minutes and 42 seconds
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thor on Aug 9, 2007
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- [Applause]
- Thank you.
- [♫ Soft piano music ♫]
- Good morning.
- [Laughter]
- We wanted to bring you around a little more slowly.
- I thought perhaps we were a little abrupt in trying—
- I know it's early.
- I need you fully alive and alert and well lubricated this morning.
- So I thought this is a wonderful way to wake up so early.
- [Laughter]
- Good morning and wakey wakey.
- [Laughter]
- That music is very pretty, isn't it?
- Don't you like that?
- Isn't that a wonderful way to wake up?
- That's claimed to be the most beautiful music ever written.
- Those of you who have ever seen the play or the movie "Frankie and Johnny"
- will recall that that was the music that was played by the all-night deejay
- when Johnny, in a fit of passion for his beloved Frankie, and in a panicked attempt to woo her quickly
- asked the deejay to play the most beautiful music ever written,
- and that's the music that was played.
- It's the "Clair de Lune" by Debussy, and I've always wanted to use the word 'woo' in a briefing.
- So big day today.
- [Laughter]
- Well you and I are are going to make some beautiful music together this morning.
- I don't know if it'll be as pretty as the Clair de Lune, but we're going to take a little look
- and a little listen forward at the upcoming report on digital trust.
- Digital trust.
- Now to do this and to get ourselves fully alert, we're going to start with some mental calisthenics.
- No jumping jacks this morning, but what I do want you to do is to pull out
- the old nTAG gizmo.
- Pull out your nTAG gizmo and scroll down for me to Live Voting.
- Always better than dead voting.
- Live voting.
- We're going to do four questions here this morning.
- Jefferson, if you could give me the four questions please.
- Now do you know how to use this?
- Go to Live Voting, you hit the checkmark button and you'll see answers 1-6.
- When we show you a question like this one, all you need to do is scroll down
- to your selected answer.
- There's the question.
- I'm going to let you read it.
- You scroll down to the selected answer.
- You can either use your little pick thing here or you can scroll.
- You pick an answer, go follow along with me, and then you hit the Okay button.
- Do it now.
- Do it now.
- [♫ Jeapordy theme song ♫]
- Quickly, quickly, quickly. And as soon as you've done that.
- Okay, okay, okay.
- Jefferson is going to give us the tally.
- There it is.
- So, okay well you can see that racehorse.
- Remember those.
- We're going to use those a little bit later on.
- Somebody here remember that.
- Got it.
- Okay, let's go to the second question there, Jefferson.
- We'll do the same thing.
- Do it again.
- Okay, number one reason bumpty bump.
- You've got six choices on there.
- I'm going to pick an answer myself. Let me see here.
- Hmm, hmm.
- [♫ Jeapordy theme song ♫]
- Do it, do it, do it.
- Hit Okay.
- [♫ Jeapordy theme song ♫]
- Are you coming along?
- Are you with me here?
- You know, is this part working here?
- Not just the chewing part.
- Okay, good.
- Look at that, and what have we got here?
- And then—access control—oh it's a racehorse.
- Okay.
- Not bad, not bad, not bad.
- Remember that.
- We might use that a little bit later on.
- Let's go to the next one, Jefferson.
- Here we go.
- How many in just two years?
- Okay, pick a number.
- Pick an answer.
- I'm going to pick an answer.
- [♫ Jeapordy theme song ♫]
- Do it, do it, do it.
- [♫ Jeapordy theme song ♫]
- Oh wow.
- Oh hey, oh— all right.
- Isn't this exciting?
- [Laughter]
- This is just daggone exciting isn't it?
- How did we ever do it without these?
- Okay, let's go on to the fourth and final observation.
- Okay, scroll down.
- Live Voting.
- [Laughter]
- Pick one of those.
- I know what I have to pick.
- You just have to make your own choice.
- Okay, do it, do it, do it.
- Remember that one.
- [♫ Jeapordy theme song ♫]
- [Laughter]
- All right, are you with me now?
- Are you with me now?
- Okay, let's go back to where we were when we left.
- Fully lubricated.
- This is all in gear.
- I need your help.
- So, we're back to digital trust, and perhaps the best thing we could do to get started
- would be to talk just a little bit about what we mean by digital trust
- and why the LEF decided to turn its lens of exploration on this particular circumstance.
- So I'm going to ask you to do one more thing.
- Find somebody very close to you, reach out and shake their hand.
- Reach out, shake their hand.
- Give it a good shake.
- Let's go.
- Shake that hand.
- Okay, how did that feel?
- Did that feel good?
- Did that feel good?
- Handshakes feel kind of good.
- You know, there are studies that show in the process of doing a handshake,
- there's actually a chemical transfer that occurs.
- So that on some primitive basis, we learn something about each other and
- that helps us make decisions at some level.
- So what started out in the Middle Ages as a technique for safe greeting,
- no weapons, has come to represent ever so much more.
- In fact, it's representing all of the cues that we use to make decisions, good or bad.
- Decisions about whether we should buy something or not buy it.
- Whether we should participate further in a transaction.
- Let it go or abort.
- Whether we should sign a contract or not.
- Whether we should enter into a partnership or not.
- It's all about decisions, and the handshake has come to represent those confidence cues.
- So what if handshakes, what if they disappeared, and not only did the handshake
- itself disappear but all of the confidence cues that we've come to
- depend on to help us make decisions.
- What would we do?
- Would we just like roll the dice and hope for a good result?
- Would we cross our fingers and just wish for a good result?
- Maybe what we could do is just spend our way into a good result.
- Perhaps what we ought to do is open the Good Book and seek help from
- a higher authority to help us make those decisions.
- Well, we all know what it is we are looking for.
- Even though we are rarely very explicit in what we mean.
- And certainly, the piano man knows what the key issue is here.
- [♫ And I don't want it to happen to us because it's always been a matter of trust ♫]
- Yes indeed.
- Billy Joel does know it is a matter of trust.
- You know, we use a lot of words to try and explain what we mean by trust.
- Words like assurance, belief, faith, confidence, security, reliance, reliability.
- We use all of these words, and measures of trust have included for a long time
- important sociological and psychological constituents dealing with degrees of
- expectancy about the promises of another.
- And in fact, I read one study recently that defined trust this way.
- It said trust was the willingness to accept vulnerability based on the positive expectation
- of another's behavior.
- Some people say that trust really only can go between people and that certainly
- you should trust no institution.
- Certainly no political institutions and maybe nobody over 30.
- Well those soft contributions to trust stay.
- They're still important.
- They matter.
- What our report concentrates on are the technology contributions to trust.
- Those things which are the sources of digital trust.
- In other words, we're asking the question: how do I or can I shake hands with a digital enterprise?
- Well, whatever your level of uneasiness about your understanding of trust,
- we have in fact plowed ahead into the digital enterprise,
- and we have not heeded the advice of those who say "we're just not ready.
- We have—those handshakes have seemed to fade.
- We're just not ready."
- We've plowed ahead anyhow.
- [♫ Stop the world, the grass isn't greener. ♫]
- [♫ Stop the world, is it really getting better? ♫ ]
- [♫ Stop the world. ♫]
- No, no we didn't stop the world despite the pleadings of Leslie Clemmons.
- Even though traditional handshakes have seemed to fade,
- and this is a pretty impressive example of the degree to which we have plunged ahead
- into the digital enterprise, some impressive numbers here.
- In fact, you don't have to be too very old to remember when Ajax was
- just a household cleaner.
- When blogs were things you cleaned up off the kitchen floor right after they spilled.
- When podcasts were ways of preparing vegetables for dinner.
- When web 2.0 was Charlotte's latest work.
- [Laughter]
- When google was a sound your little granddaughter made and not a verb.
- When wiki's were associations of witches.
- I might be wrong on that one, but you get the idea.
- And so anytime a new service, feature, function, activity, cool thing shows up,
- man we grab that and we go for it because we think there's value there.
- Look, some of these are pretty impressive numbers.
- How many of you picked 80%? Look at the second bullet.
- Raise your hand, give yourself a pat on the back.
- I don't believe you.
- [Laughter]
- 80% and by the way, that's a 180 degree shift in just the last 3 decades.
- 2 billion songs downloaded from iTunes.
- We're making online identities left and right.
- No problem here.
- Large federations of companies --
- I personally have 147 billion e-mail messages in my inbox today.
- So the rest of you have the other 13 billion.
- I don't know how I missed them.
- And we are conducting elections in this country and other countries with electronic voting stations.
- So we've plunged ahead.
- We've moved forward.
- Ready or not, digital trust or no digital trust, here we come.
- But this plunge has not come without some problems.
- Problems that lose money.
- Problems that subrtract value.
- Problems that send people to jail.
- Problems that steal capacity for no productive reason.
- Problems that generate entire business models based on digital theft and fraud.
- So something is missing, and that something that is missing becomes
- a little more clear when we start to ask the "why is it" questions.
- Why is it that some voting machines are okay for electronic voting and others are not?
- Why is it that some software is okay for use in national security and intelligence
- but others is not?
- Some INA, identification authentication soft—is okay for financial transactions, and some isn't.
- That a digital tune downloaded without rights management costs 30 cents more
- than the same digital tune downloaded with rights management.
- That fingerprint authentication at Disney World is more valuable than a photo ID.
- That you can buy your way through the TSA sometimes.
- That losing some laptops with personal data is forgettable,
- and losing other laptops with personal data is nearly fatal.
- And that even perfect websites, even perfect websites can be subject to victims of threat and misuse.
- So our report attempts to answer some of these "why is it" questions,
- and see if there isn't some way of bringing greater value to the enterprise through security.
- Now I don't want you to think that Ron Knode or the LEF or even CSC invented the phrase "digital trust."
- Oh no no. Au contraire.
- In fact, I Googled this phrase recently.
- Oh look at me, how modern.
- I Googled this phrase recently, and I got back 50,700 hits on the phrase "digital trust."
- And due to my superb analytic capabilities, in a very short time,
- I was able to catalog those 50,000 plus hits into 3 categories of use, and there you see them.
- There you see them right there.
- Well, we're not using it for that.
- We're not using it for that.
- In fact, we're not really interested in being just the 50,701st hit on digital trust.
- We want to answer some of the "why is its" and again see about bringing--
- if there is not a way of bringing greater value to the enterprise through security.
- We want to answer the question, how do we shake hands with the digital enterprise?
- So let's look at it this way.
- Since the Renaissance, when in fact the mathematical notions of risk and risk management
- Risk management and even information risk management has particularly been done this way.
- Basically, a defensive strategy that says let's defend what we've got.
- Whatever we've got, let's hold on to it, and let's reduce the chance of bad stuff happening.
- So even when we do a perfect job at this, the best thing we can end up with
- is that the total value of the enterprise remains exactly the same.
- So we stared at this, and we said, gee, is there another way to look at this?
- Because today, that just doesn't seem to be enough.
- And so we started at it and we wondered if there was another side to this same issue.
- And with the help of a loving spoonful, we were able to twirl this coin a little bit
- and spin it around to look at the other side.
- [♫ And there is another side to this life I've been living. And there's another side to this ride ♫]
- And there it is, and this is digital trust.
- It says, well wait a minute, maybe we can increase the value of what we have
- if we approach it that way and improve the chance of good stuff happening.
- Wouldn't that be wonderful?
- Now if you're like me, you can't remember both sides of the coin at one time.
- So let me give you a little help here.
- So what we're going to show you is what was on the left side of the coin
- and what's on the other side of the coin.
- So we've got the bright shiny -- and I was sitting with a friend recently,
- and we were looking at this picture, and we were both sort of biguiled and entranced
- by the bright shiny side of the coin and marveling at the potential that
- it suggested to us and congratulating ourselves on having seen
- this other side of the coin thanks to a loving spoonful.
- And then my friend said, well you know what Ron? Even though we're just so excited
- is really serious business.
- Still needs to be done.
- Still needs to be done. And so we can't forget about that and then we thought
- a little bit further and said, you know what? The metaphor still works.
- You can't spend just one side of a coin.
- So, this is the way it ends up.
- So we have these model equations and those of you in the business
- of information security, you recognize the one on the top.
- It's in every textbook.
- It's in every professionalization exam.
- It's fundamentally an expression of the defensive strategy of information risk management
- and risk exposure, and it's holding what you've got.
- So there is really no way to account for a good idea of value expansion.
- Let's say I had a good idea about rights management,
- and if I apply this rights management idea, I could monotize our intellectual property
- more completely and more quickly than otherwise without increasing its exposure to loss.
- Well how would I possibly account for it in that equation?
- Couldn't do it. And you know, this probably explains in great measure why
- we often express our IT security budgets as merely a percentage of our overall IT budget,
- and why for the last 20 years we've tried to figure out just how small
- that percentage can be before risk exposure goes up.
- Well then, on the other side, we look at this other model equation that says
- let's focus on the business benefits.
- Let's give ourselves credit for that first, and oh, by the way,
- let's account for any changes in risk exposure.
- That, in fact, is the digital trust strategy.
- So here's what we end up with.
- We end up with digital trusts being defined as you see here.
- Evidence-based confidence.
- That's real important that stuff is working the way it claims it's working.
- There's nothing else going on.
- So it's more than a risk of loss.
- Now the good news for you and me is that it is in fact announced
- with features and functions -- the things we see, the things we feel, and we say,
- oh that's pretty cool.
- That's working nice.
- But it is completed. It's grown.
- It adds value and it is used competitively to advantage with certain lifecycle
- characteristics of design, development, deployment.
- That's real important.
- Now, believing that that's true, why would you not use that perhaps as a technology strategy.
- As a security planning and implementation strategy focusing first by real
- business pay offs of security and that which we call digital trust.
- But also delivering risk reduction as a beneficial side effect.
- Oh I know.
- There are skeptics.
- There are always skeptics.
- In fact, one of the most prevalant skeptics I certainly know of is Perry Como
- who often can be heard to say--
- [♫ It's just impossible, impossible, oh impossible. ♫]
- Well we'll see.
- So what we decided to do, we picked six key issue areas as important contributers to digital trust.
- And we picked them for three different reasons.
- Here you see.
- The first three--identity, intellectual property and compliance management--
- we picked because we just couldn't imagine a transaction in digital enterprise
- that didn't involve subjects of some kind.
- Not always the wet-wear kinds.
- There are subjects without a pulse.
- In fact, there may be a few out there.
- Intellectual property, there is always something of value involved in this,
- and there are always a set of rules and so compliance and manage—
- that takes care of the first three.
- The next two are facts of life.
- We control what we do.
- We can't control that threat environment.
- So digital trust, if it's to be real, has to be able to respond to e-threats and countermeasures.
- Another fact of life is liquid security.
- If you read the Connected World, the last LEF report, then you are familiar
- with the notions of liquid, time and place.
- Well, if digital trust is to work in the new digital enterprise, it must be equally liquid.
- More about that later. And then finally, we like to measure things.
- We want to measure digital trust if we can.
- That gets us to transparency and assurance.
- Now each of these key issue areas delivers a clear tone of contribution
- to digital trust in and of itself.
- [♫ ♫]
- And also they can sound real sour notes of penalty when deficits to digital trust occur.
- But they are most effective when they work in harmony of digital trust actions
- and they amplify the digital trust result.
- [♫ Crescendo in triumphant music ♫]
- [Applause]
- That might be a little over the top, but you get the idea.
- It's not very far over the top.
- This is real.
- In addition to those six areas, we've put together some foundation questions
- to help us check on the reality of digital trust in each of those key issue areas.
- To see about the pay offs, the value enhancements that could in fact occur
- and to look at the potential for penalties if there is a digital trust deficit.
- Kind of important learnings right here.
- The pay offs are real, but you have to target them.
- They're not automatic with digital trust.
- You have to intend for those pay offs to occur.
- Unfortunately, the penalties seem to be automatic.
- If you do have or suffer a digital trust deficit, the penalties come.
- One more note.
- Steven Covey, noted author and motivational speaker, published a book late last year,
- and it was called "The Speed of Trust."
- Now it wasn't written specifically to address digital trust, but many of the observations
- and conclusions that he reached around trust are equally true for digital trust.
- So we had to keep our head on a swivel looking both forward and backward.
- Because yesterday—by the way, one of the most important truths he discovered
- was that nothing moves as fast as the speed of trust. And now I can add:
- nothing moves as fast as the speed of digital trust.
- So we have to look forward and backward at the same time.
- Even as we're working on the research because yesterday's future,
- due to the speed of digital trust -- oh my goodness -- becomes tomorrow's past,
- and there's a new tomorrow's future and then digital trust zooms right along.
- So we're reminded that there's something we must always keep in mind
- and certainly Fleetwood Mac helps us.
- [♫ Don't stop thinking about tomorrow. ♫]
- [♫ Don't stop, it'll soon be here. ♫]
- Okay, so we have to keep our eye in both directions at the same time.
- Now we're not done with this report.
- But we do have some things we want to talk about with you.
- We have—let's treat this as the beginning of the conversation.
- It's not the whole conversation.
- I'm going to leave a lot of stuff out because we don't have time.
- So I invite you to come to the Innovation Lounge.
- I have room for 13 billion more e-mail messages.
- Please—you know—call me, and we'll continue that conversation.
- It is the job of the LEF and these research projects to provoke a conversation in the marketplace.
- And for right now right at this moment, you are the market, and this is the marketplace.
- So we want to provoke a conversation.
- But it's important that you get the full story of digital trust, and this is how you'll get it.
- Come out in eight volumes, and you can see.
- There will be one volume for each of the key issue areas that we've selected,
- and so there will be a lot to learn and say and think about in each of those volumes.
- Well, we do have a little bit of time this morning.
- So let's take a little peak and a little listen forward at this upcoming report on digital trust.
- And we're going to start by going around those six key issue areas
- and spend just a few minutes on each of them.
- Because we want to concentrate on the harmony of digital trust.
- If we sing one note for too very long, we kind of forget what that harmony is.
- So let's begin with identity management, and in our social enterprise
- we're very comfortable with this.
- We're very comfortable with this, and we often start our conversations around
- identity management with a simple shout.
- [♫ Who are you? ♫]
- [♫ Who who, who who? ♫]
- [♫ Who are you? ♫]
- [♫ Who who, who who? ♫]
- So The Who say it: "Who are you?"
- And in a social enterprise, we're very comfortable with that,
- and we know how to answer that, but when we push that into the digital enterprise
- there's a couple of changes that are important and a couple of
- value propositions that can be realized through digital trust.
- First thing we have to realize that it's not just wet wear who are subjects.
- In the digital enterprise, we have things without a pulse.
- Other stuff that are subjects too, and they are becoming increasingly important,
- and they are increasing opportunities for value.
- Well wait a minute, wait a minute, wait a minute.
- Oh I'm reminded, I'm reminded.
- I'm about to lose my license to brief on identity management.
- There's an obligatory slide that everybody who briefs on identity managment must show.
- It's part of Union rules.
- So if you'll just excuse me.
- Here it comes.
- There it is, there it is.
- Now I'm sure you've seen it before.
- Since 1993, this is a 15-year slide, and we all like to use it,
- and it was true in 1993 and through security technologies and digital trust approaches,
- it's becoming less true, but it's still true.
- So I have to show this one.
- And every time I show it -- you know, I've seen it hundreds of times,
- but I'm really, really impressed by the earnestness of that dog on the floor.
- And the ton of attention that the dog in the chair is getting.
- And I hope that you're taking a lesson from that.
- Okay, I'm fully certified to continue, so let's go back where we were.
- So when we hear this shout of Who are you? from The Who in our social enterprise,
- we're very comfortable answering. And in fact, Neil Diamond tells us how to answer.
- [♫ "I am," I cried. "I am," said I. ♫]
- So the shout of Who are you? is often answered back by the shout of I am.
- In the digital enterprise, shouting is not quite so easy.
- It doesn't really work that way.
- We like identity so much because we all have one.
- It turns out we all have many!
- Consider when you go to a sporting event. You sit down next to somebody. You shake their hand.
- You are whoever you say you are.
- When you buy something in a store with a credit card, you are whoever that credit card says you are.
- Mainly, you're a legitimate credit card holder. You pay the bill.
- When you answer the phone for a political survey, for example Pollster,
- you are WHATever you say you like or don't like.
- When you're involved in an unfortunate traffic mishap, you are whoever your driver's license says you are.
- And when you try to return to country after a visit abroad, you are whoever your legitimate passport says you are.
- And our Italian friends can tell you a lot about that.
- So our pseudonymous behaviour, in real life, we're quite comfortable,
- but that has to happen in the digital enterprise, too.
- And so that leaves us with a context-sensitive identity.
- And so things, even before we get to worry about, oh, clever authentication--
- more about that later--
- and ways that the set of claims gets populated -- a little more about that later--
- Digital trust brings value and identity management by shaping and contouring the set of claims
- that is delivered for a specific purpose based on the context based on the purpose.
- And delivers them in the most efficient way possible.
- So if you answered the question--your mother, your brother, a biometric--eh.
- You're all right.
- And you know that digital trust shows up in all popular ways, all the popular identity models we use today.
- And here's the first one. This is the one we're all comfortable with or familiar with.
- It's what we call the walled garden of the enterprise.
- And here are all of the subjects we need to communicate with, mostly,
- and all of the applications we need to use, mostly--
- are in one place, and we put a wall around it, and that's our enterprise, and that's where we sit and live.
- And the most important thing there, and the way we get value out of that through digital trust technology
- is in convergence. Convergence happens at two levels, though.
- The one we're most familiar with is to say, Well, rather than have an identity stored for each of those applications,
- let's put it all in one.
- We've got some wonderful technology that helps us do that--
- technology from Sun, and IBM, and CA, and BMC, and Oracle.
- And we use them all. And what they do is attempt to converge
- all of those identities into one identity store.
- And the more we can do that, the better off we are.
- The value proposition here is huge -- 78% savings in administrative costs.
- Additional savings come from automated compliance reporting.
- So convergence is -- every big company and big government organization is somewhere in the middle of this.
- Well, how does it show up? Well, most of the time it shows up in things like single sign on.
- And so we can get a big pay off with digital trust just in the logical convergent.
- But wait.
- There's another layer of convergence that is just starting to happen.
- And the pay offs are almost off the chart for this one.
- We saw it a little bit in the US in the Department of Defense with a common access card,
- but now there's clever technology from companies like Improvada and Quantum Secure
- that allow me to converge my logical identities with my physical identity,
- so getting in a building and in a room and getting access to a particular cabinet.
- All of that now is converged with logical identity.
- And it almost looks free.
- So the important thing -- the digital trust here emanates from a converged enterprise directory,
- and the most important thing is not necessarily exactly what the identity claims are,
- but just that you are a row in that directory.
- That's what gets you paid.
- Well, when we find that we can't live with just the subjects in our walled garden,
- and just the applications in our walled garden, we evolve and associate ourselves with other walled gardens.
- We often call this identity federation. It's really a federation of walled gardens.
- And once you have done the laborious out-of-band work in negotiating a trust agreement,
- out of band,
- you can use digital trust technology to great advantage to implement and deliver
- the value of what I like to call That's Good Enough For Me identity.
- you become a subject in another walled garden and another walled garden and another walled garden,
- through the magic of digital trust technologies.
- There are two technology foundations for that.
- SAML - Security Assertion Markup Language,
- and cross certifying of public key certificates. We call that Bridge CA in a lot of places.
- Really good examples of how this has paid off.
- Aramark. Food services company.
- They allow 250 -- more than 250 other companies to involve themselves directly
- in the Aramark value chain and supply chain to order food and food stuffs,
- without having to log in again. Just come on in.
- Boeing and Southwest Airlines are allied like this in the maintenance chain.
- Southwest is an all-Boeing airline -- all Boeing 737s.
- So there's no faster way. The value proposition here is great.
- For Bridge CAs, there are a bunch of really big ones that we all know about--
- financial industry has Identrus -- 160 different countries, 60 different organizations.
- The federal government in the US has Federal Bridge CA.
- The aerospace and defense industry has CertiPath,
- and here's one I want to spend just a second on -- the global pharmaceutical industry has one called Safe.
- And for the first time ever -- this year -- February of this year --
- for a new drug approval to the US Food and Drug Administration,
- replacing a million pages of paper and thousands of handwritten signatures.
- Totally electronically.
- Can you imagine -- that was AstraZeneca, by the way --
- using the Safe Bridge CA.
- Can you imagine the value proposition behind that?
- Finally, when our need for applications expands beyond any walled garden,
- we have the model of an open garden. Now, this is fairly new.
- It was tried before, maybe 10 years ago, and it didn't really work too well.
- Fairly new. And we've got lots of alphabet soup of new acronyms and standards going on,
- but this is a case where the digital trust emanates because we've been able to separate
- the acquisition of the identity credential from the presentation of identity.
- And so we have digital trust value because new industries are being created,
- those digital identity service providers -- new businesses
- Now, salesforce.com -- you might be familiar with them -- is probably one of the best enterprise examples
- of somebody using the open garden in the enterprise.
- This is really intended for the methods and applications that are identified in the laws of identity
- written by Kim Cameron of Microsoft.
- Now, I've retitled the Laws of Identity as the Laws of Consumer-Based Web Services Identity,
- because that's really what they are.
- And those seven laws point me to uses of this open garden where
- the user actually filters and contours all identity credential providings.
- Now you'll notice that none of these three really handle non-wet-wear identities very well.
- as things like the global carbon market start to explode where people simply can't do the trading.
- A word about identity.
- Now, does identity -- some people say identity equals reputation.
- And I've put myself in some really, really, really good company here.
- I'm now hooked up with Shakespeare, Ben Franklin, and Warren Buffett.
- That's not bad, huh? I'm doing pretty good.
- And you can see that reputation for wet-wear subjects is worth money,
- if you can capture it with digital trust technologies and expose it and leverage it,
- it's worth 8.1% on eBay.
- Now, reputation turns out to be one of the few ways we have to deal with non-wet-wear subjects.
- There are companies like Iovation who first fingerprint a device and then track its behaviour
- in certain transactions to amplify the identity, to decide whether it's a good identity
- that we want to include in transactions, or a bad identity. Looking at the hardware.
- And this is used in great measure by the online gaming industry.
- Don't ask me how I know.
- Why? What's the value?
- The value is it gives their consumers a sense of fair play and more people come to play poker online.
- More people come to play blackjack online.
- Because they think it's a fair game because we're using this digital trust technology.
- Oh, I've got to say a word about authentication.
- I'm not going to say much. You'll have to read the report.
- It turns out it is one of the fastest ways to gain digital trust
- if you can add some sort of clever authentication, and everybody reads books about that.
- There's also a big intersection -- ooh, Bill, Intersection -- title of the whole conference.
- There's a big intersection between identity and authentication and compliance management.
- We'll see that happen a lot with compliance.
- I want to point out one, though, this knowledge-based authentication,
- a real triple-play of digital trust value generation.
- Mellon Investor Services, they want to get their investors online faster.
- So, like so many people, they had this process of double mailings,
- and I won't go through the whole thing,
- but they wanted to use a hint-based system, but they didn't want the problems, Mike,
- So they used public records data to generate the questions that you're supposed to answer.
- So they get a triple-play. They get their investors online faster,
- they have fewer calls to the help desk, and they have no privacy store to worry about because it's all public records data.
- Ooh. Digital trust works for them.
- Now, I've got to talk about biometrics.
- You've heard me mention the USTSA frequent traveller program.
- But at Disney World, you don't use picture IDs. You get your ticket, you go through this thing called Ticket Tag.
- And it uses a fingerprint. And there you can see, there's a -- even little kids can use it.
- That's a little girl's arm. She's reaching up, putting her finger in there,
- because as soon as she does that, guess what?
- [Sound of kids yelling "Yay!"]
- They're off! They're off ... to Space Mountain.
- Now, that really wasn't a tune, but that was music to my ears.
- Well, those of you who answered the question about digital identities--
- what's the best one, and authentication, and everything--
- that's representative of our quest to see if we could, please, digitize our DNA.
- Is there a Holy Grail?
- One digital identity that works for all subjects in all contexts?
- Wouldn't that be wonderful? If we could just find that.
- Well, stop looking. [Laughs]
- Because the Internet didn't come with any identity layer or consequently,
- And so no single identity satisfies our pseudonymous behaviour,
- and plus, there's no value proposition to really push us that way.
- And we have these problems with subjects without a pulse.
- And I can see the angst on your faces already,
- saying, Oh my gosh, you know, I've heard so much about identity theft,
- and Ron's talked about a bunch of places they could use my identity
- and different claims of identity, and oh my goodness! Oh my goodness! What about me?
- Well, I want to put your mind at rest.
- Because no matter what we do to your identity and how we change it around,
- [♫ You're still you ♫]
- [♫ After all, you're still you. ♫]
- I'm going to need a moment.
- [Laughter]
- But what about intellectual property, then?
- I mean, this is going around that circle.
- If you've done the arithmetic on the 80% thing, and you know what the S and P 500 Index is,
- you know we're talking about a trillion dollars of intellectual property value.
- There are exchange traded funds -- happy ones -- working today totally based on intellectual property.
- And by the way, that ratio is only going to grow,
- because as Jay Leno once said about Doritos, We'll make more.
- And we're making more digitally. Since 1999, just about everything is being made digitally.
- So now, there are really two approaches to this.
- We heard from Sun Microsystems yesterday one approach.
- [♫ If you love something, give it away. ♫]
- Okay. Well, you know, that might work for Sun.
- He would agree, then, with Emmylou Harris and Conor Oberst.
- Most people don't. And we have another way of dealing with intellectual property.
- First off, intellectual property protection is more than confidentiality. Way more.
- And there are five value characteristics, all of which are important.
- Second observation is, they all have to be preserved with digital trust technologies
- in order to gain value through the entire life cycle of information.
- And a third one might not be quite so obvious to you,
- but let me just say it here.
- And that is, digital trust on IP -- on intellectual property protection --
- actually has the possibility of creating new value over intellectual property you already have.
- We've seen it in the iTunes market. We'll see it again in newspapers and journals.
- And repackaging newspapers so I only need to subscribe to the funny pages and the sports.
- I don't need that nasty front page. That would be wonderful.
- Well, what's happened is that, against those IP value characteristics,
- we've seen the emergence of some older technologies be used new ways,
- and some brand-new technologies.
- And I don't have time to go through all of these here today, but I want to point out a couple to you.
- Every college and university in the UK -- University of Colorado system, University of Iowa system,
- many high school systems in the US, including the one in Fairfax County, Virginia,
- Lexus Nexus, and -- okay, hold your hearts now --
- Oprah Winfrey -- use digital trust technology from an outfit called TurnItIn.com
- in order to check on the authenticity of claimed intellectual property.
- If you'll remember, Oprah had a little problem with a book some time ago.
- And they said, well, wait a minute. This can't be right. I want to make sure that it's original.
- So that usage has come along wonderfully.
- Fingerprinting and watermarking are used primarily in a consumer industry
- to make sure that when you buy a movie, you get the one you bought.
- Not some knock-off movie.
- We see a lot of content encryption in rights management.
- Apple, Microsoft, Rhapsody -- they've all generated rights management based on content encryption
- that allows them to own the whole value chain,
- the beginning, content creation, to content rendering.
- Remember those 2 billion tunes coming down on iTunes?
- What did they get played on?
- iPods. iPods carried Apple for a couple of years there,
- and it was because they were able to parlay a clever idea
- and a stylish design with some digital trust technology around rights management.
- Now, in the enterprise, what we're seeing is an attempt to move content--
- intellectual property -- to places where it can be monetized more completely.
- And so new things called content monitoring and filtering technology,
- sometimes called data loss prevention technology --
- plus PortAuthority and Tablus -- I don't know why they didn't begin with a V.
- We see that a lot. Companies like DuPont, WorldComm, Raymond James Financial,
- Now, if you stare at that chart for a long time, you start to think:
- Gee, if I just arrayed the technology right, there's kind of a digital trust zone against those value propositions.
- And what we're really seeing is that digital trust and IP protection
- move the focus from the platform to the data itself.
- So you've heard me mention that some companies were very consumer-oritented companies,
- and then I named some companies that were really enterprise-style, business-to-business companies.
- What we've learned and what we've seen is that many of the technologies that started in the consumer industry,
- because there were fewer formats of information that we needed to worry about
- and we could, in fact, control the whole value chain.
- And we had a sense of what was being lost.
- So the degree to which we could prevent loss -- guess what that was.
- Another dollar of revenue coming in.
- So it's worth doing. We get digital trust working for us.
- But as we've moved that -- by the way, a little political and legal brouhaha there, too --
- you'll read in the newspapers, no doubt --
- but as we move over to the B-to-B value chain, some of those other technologies translate,
- although haltingly -- rights management has had a real problem for a decade now
- trying to find a niche because of the wide variety of formats and because we really have no sense of what we're losing,
- so the value propositions get harder to quantify.
- and we'll -- more about that a little bit later on.
- Compliance management! Holy cow! We thought when we picked six, we'd gotten six dots here.
- It turns out we had five dots and a dash.
- Compliance management is different. It is the business of keeping the business in business,
- and it's often the first order of business.
- I had a boss once, an admiral, who, whenever I did something right,
- however infrequently that might be,
- he told me, he said: Ron, your reward is no further punishment.
- And that's kind of the way it feels with regard to compliance management.
- And we're all familiar with the fact that there's lots and lots of compliance going on.
- There's no shortage of compliance mandates.
- And we do have to deal with them.
- And so, in certain cases, compliance itself is the real return.
- And we always focus on the holy trinity of compliance in this country.
- You know, you can't give a briefing if you don't say, Gramm-Leach-Bliley,
- HIPAA, and Sarbanes-Oxley. And now we've added the fourth to the holy trinity,
- so I guess it's holy quaterninity or something.
- We've added the PCI data security standard for the payment card industry.
- And that's all around the world, too.
- But I want to point out that there are many, many others, and there are some game-changers here
- and real opportunities for digital trust, in particular in legal discovery.
- Now the good news for all of us security people is that
- we can still use compliance management as the justification, even for a digital trust strategy.
- If we haven't been able to convince the boss otherwise, we can say:
- Well, boss, you know, guess what? Compliance happens. And we have to have a strategy for this.
- And if we don't have a strategy for this...
- [♫ I fought the law, and the law won. I fought the law, and the law won ♫]
- Bobby Fuller is right! That's the Bobby Fuller Quartet. If you fight compliance,
- if you fight the law, more often than not, the law will win.
- Now, many people beleive [ahem], Mike,
- that the world revolves around compliance, that there's actually a compliance solar system,
- and compliance management is the sun in the middle.
- And we've learned in our research that, in fact, that is actually true as long as it operates this way--
- that the operational information coming from other digital trust services
- feeds compliance management, and compliance management delivery back -- guess what? -- evidence.
- Remember our definition? Do y'all recall that?
- Just go like this. That's good. Okay.
- I know you're with me.You're that dog on the floor: I got it.
- All right. And by the way, that happens for compliance itself,
- and so what we get out of this -- the value we get out of this in digital trust sense,
- is fundamentally, efficiency.
- But there is a double play, because we can use identity stores twice.
- We can use intellectual property information twice.
- And the degree to which we can use it over and over again means we don't have to pay out again.
- Most of the time, this value shows up in customized reporting, and when that reporting is completely at the end,
- and there's a head count reduction or some other kind of efficiency.
- If you look inside that compliance management sun,
- you see a lot of moving parts, which means there's a lot of opportunity
- to connect and make this stuff work.
- Arrayed around the outside, we see three kinds of digital trust technology foundations that are used
- most broadly to achieve that digital trust result.
- And some of these are brand new, and some of these are not so new,
- but they're being used in new quantities and in new ways in order to get value.
- Much of this is brand, brand new, and so our skeptic, Perry Como,
- is kind of moving to our side of the wall here.
- [♫ We've only just begun. ♫]
- Normally, that would be Karen Carpenter, but during that week, Perry was working cheap.
- So we've only just begun. So the story is not in yet.
- I want to point out just one or two things here, though.
- Content monitoring analysis, and you see that third bullet down that says e-discovery.
- Now this is a game changer, because the entire compliance framework changes on us.
- Most of the time, we're used to dealing with regulators, auditors, and some crazy regulatory framework,
- and we can argue with them. We can negotiate with them.
- With regard to e-discovery, you're dealing with lawyers, judges, and a legal framework.
- Morgan Stanley was assessed a $1.5 billion fine for not being able to do e-discovery,
- But also, the power of e-discovery is that you can use compliance management digital trust offensively.
- And there are studies where individuals have pursued intellectual property pursuits
- using compliance management technology -- digital trust technology--
- offensively to go through millions of court records and pleadings to find the information they need.
- Something they could never have done before, and we've seen hundreds of millions of dollars
- of award based on an offensive use of what is essentially seen as a defensive strategy.
- We're also seeing digital trust as a service
- show up in vulnerability management, and vulnerability management go through
- the enterprise in ways that we haven't seen before.
- And finally, we see lots of cases where -- son of a gun! If we could just handle
- the paperwork faster around compliance, then we could get an efficiency pay off.
- Liquid security. This is a fun one.
- If you remember the connected world: liquid, time, and place,
- and what we heard from Sun yesterday -- and I'll just paraphrase here--
- We're untethered. We don't have wires anymore.
- Now, they mentioned Sun's kind of seeing that. BP is doing it.
- For certain users in certain locations and with certain capabilities,
- They dissolve the intranet. Everything is an internet service. Not completely.
- I want to mention one technology for you, you'll read about. It's one of my favorite words for technology.
- It's called Mojo Pack.
- I'll let you imagine what that is.
- That could solve the problem here. That's real digital trust technology at work.
- So we have -- now wait a minute, now. We had liquid, time, and place--
- now we have liquid configuration as well.
- Things that used to just be on computers and stuff, now we've got them on things called mobiles.
- And I can tune my TV, buy a soda, and do online banking in Japan with the very same device.
- Isn't that wonderful?
- And so everything -- even though we've got no wires, everything is connected to everything.
- There's smart homes, smart cars, smart highways, smart offices, smart alecs...
- and smart -- I'll let you fill in the last three letters.
- And so our digital trust security must be as fluid as liquid, time, place, and configuration.
- And so it must almost work like rain.
- [♫ Purple rain, purple rain ♫]
- Now, if Prince is in, how can we be wrong?
- And so it has to fall like rain: in, around, over, and through this liquid time, place, and configuration.
- E-threats and countermeasures. Well, you've seen these stories before.
- You've seen many, many, many charts. Oh my goodness. Oh my goodness.
- There are tons of vulnerabilites. We spend tens of billions of dollars dealing with them.
- We're spending bazillions of dollars on identity and authentication and compliance
- and intellectual property, and you know all that.
- But even when we do everything exactly right -- even when we do everything exactly right,
- bad things can happen. We don't control the outside.
- [♫ "Jaws" theme music playing ♫] And we are swimming in a sea of threat.
- [♫ "Jaws" theme music playing ♫]
- So nasty things can continue to happen to us. [♫ music stops ♫]
- Yes, indeed, there are nasty things. And so digital trust has to be able to respond to those nasty things.
- Now, I sought a song for nasty things, and I found one.
- This is a song -- I have the words here for you, but there's no recorded version,
- so here we go, ladies and gentlemen.
- We're going to have the LEF American Idol.
- You come to the Innovation Lounge. You bring a tune for this song,
- and I have a prize for you. I have a wonderful lariat that blinks blue and got a dog tag on it.
- I'm sure nobody has one.
- [Laughter]
- Now we've picked these four areas that are representative of a situation
- when you do everything right, bad things can still happen.
- And what we've seen is that as the e-threats move around,
- your need for digital trust changes.
- I often have -- and people say, Well, Ron, I see this fourth -- I know them.
- They're digital. I've got it. What's this no-tech exposure thing?
- I thought this was digital trust. How can that be right?
- Well, what we've seen here is that no tech exposures are reflected back into the digital enterprise
- and show up as a digital trust deficit, and so the penalties really come through
- a digital trust deficit.
- I also happen to think that perhaps my next career is here.
- Those of you who do no tech can see that I've got some real talent.
- Okay. At any rate [ahem], that brings us to transparency and assurance.
- Wouldn't we like to measure digital trust? How much do we have? How much do we need?
- Is it better to get it from one place or another place?
- Can we get it with reputation? Can we get through trust brokers?
- Having a staff with special credentials. Does that make it any better?
- Here, architecture matters!
- And so we deal with digital trust in service-oriented architectures and with virtualization.
- After all, what we're trying to do -- what we're trying to do here is to get all the participants
- in a transaction in a digital enterprise to agree and to say about that enterprise and that transaction.
- [♫ I really love you, and I really do ♫]
- Thank you Kylie Minogue.
- You Australians in the crowd will love that one.
- Okay. Listen, this brings us back to the whole notion of trust and the power of trust.
- And you can see -- these phrases, you probably see them all the time in literature and online.
- There are phrases because people love this word trust.
- It brings something to the conversation. It makes us be more believable.
- Trust watch, trust digital. e-trust, trustee, cybertrust, entrust, cybertrust, web trust,
- public trust, drive trust, and beyond trust.
- They all show up. And we use that word for so many reasons.
- Now, come closer. Come closer. Listen carefully.
- Listen carefully. I found a new one.
- The International Congress of Neuroendocrinology has identified oxytocin--
- not OxyContin--
- oxytocin as the hormone of love. The hormone of trust.
- And Dr. Joyce Brothers recently said about a company who had been able to liquify this:
- They've made a trust potion.
- And I think it's only fair to tell you now. Maybe I should have told you earlier,
- this liquid trust is intended to engender trust--
- that before I came down here, before I came on stage,
- I sprayed and gargled with liquid trust. So right about now, you should be in the palm of my hand.
- and you should have a real sense of affection for me.
- Can I feel the love?
- [audience: woo hoo!]
- All right. Okay. All right. So liquid trust. If you want -- you know--
- There's value in that, too. See me later.
- Okay. Trust power. All right. So here we are.
- Even today -- even today -- or especially today, we are seeing enterprises showing
- symptoms of a digital trust strategy and gathering the benefit of digital trust strategy
- no matter what they call it. No matter what they call it.
- And so learning how to become a digital trust enterprise becomes possible.
- We've got people who have paved the way, at least a little bit.
- And so we would ask the question, Gee, could there be, even today,
- a digital trust poster child?
- Would it be, for example, Motorola, whose CISO and Vice-President Bill Boni
- works on a traditional impact-based risk assessment, risk--
- information risk management methodology, but he's arranged it for his team and his organization
- to get credit for doing business enhancement.
- He's generated a wireless security service out of his information risk management practice,
- and that he gets credit for. He has expanded the value of services out of Motorola.
- Well, if not him, maybe it would be the EPA.
- Now, one of the federal government's service centers for FISMA compliance,
- they went from a near failing grade to an A plus. By the way, CSC helped them do this.
- And now they're one of the federal service centers for FISMA compliance.
- But they didn't do it just to get a better grade. They targeted a value-enhancing proposition.
- They reduced the security incidence by 55%. Maybe they're it. Well, maybe not.
- Maybe it's Aramark. I told you about them, whose CISO, Steve Erickson--
- I love this guy. Look at the quote. "We are in the business to make it as easy as possible
- for people to spend money with us."
- This is a security guy!
- Woo hoo! I love him!
- Okay. Maybe it's him. Maybe not.
- Maybe it's the US Department of Justice, the other federal service center for FISMA compliance and security
- whose deputy CIO and director of IT security, Dennis Heretick,
- built an entirely new system, the cyber security assessment methodology,
- to track the plan and capture the data and give the reporting for that annoying little FISMA thing,
- I get a good grade.
- They also went from a failing grade to an A plus.
- But at the same time, he's getting business value out of FISMA because he can let his agents--
- FBI agents, DEA agents -- spend more time doing their real jobs than this other thing.
- He's looking to get business value out of FISMA. Well, maybe not them.
- Maybe it's Mellon Investor Services with that famous triple play using knowledge-based authentication.
- Perhaps it's Apple who resurrected an entire market of single tunes coming out,
- 2 billion of them, with a parlay of a clever idea around mobile audio entertainment,
- some very stylish designs, and some digital trust technology
- that allowed them to dominate the content creation and content rendering end
- of that value chain.
- Well, maybe it's somebody a little closer to us. Somebody who is already a winner.
- Somebody who's shown how digital trust can bring value.
- Maybe it would be ...
- >> The challenge: Create the border control system to verify documents against
- counterfeits accurately and quickly, identify people using biometrics,
- and enable electronic document technology.
- >> The most difficult requirement was the ability of the system to perform
- the entire control process in a short period of time, not more than 10 seconds.
- Did you see what just -- you recognize them, right?
- That's our Italian team. Did you see what Guissespe said?
- What was the hardest requirement? It wasn't about, Oh, let's reduce the risk of loss.
- It was, Let's do it in a short amount of time so that we can have a convenient, pleasant experience
- for those coming in legitimately
- and for the officials and officers at border stations who have a job to do.
- Let them spend their time on their real job.
- So that might be -- they might be the poster child for digital trust.
- And if they are, I can think of no better way to scream They're Winners! once again, than this:
- [♫ Opera music playing ♫]
- Well, we don't know yet. We're still working. That's pretty darn good, though!
- That's pretty darn good.
- All right. So there's a lot more to say, and there' s a lot more we encourage--
- the story of digital trust is still being written,
- and the song is just being sung.
- And even though we've evolved to a different point of view than that famous skeptic, Perry Como,
- we still like his music.
- [♫ Music from a Perry Como song playing ♫]
- [♫ It is possible to make security a PLUS! ♫]
- [♫ Oh, yes, it's possible ♫]
- [♫ It is possible to grow with digital trust. Oh my, it seems possible. ♫]
- [♫ If I told you that the value of your business could be greater, ♫]
- [♫ and your enterprise would still be even safer, ♫]
- [♫ would you strategize for trust? 'Cause it is possible. ♫]
- [♫ It seems possible. Hmmmm mmmmmm. It's very possible. ♫]
- [applause]
- So thank you in nine different languages!
- Let's go learn some stuff now. Huh? Let's go see some wonderful stuff.
- Digital trust is possible.
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