The Difference Between IT and OT
Collaboration beats chaos, paving the way for innovation.
What is IT/OT Convergence?
IT/OT convergence refers to the integration of information technology (IT) systems with operational technology (OT) systems. This fusion aims to create a unified environment where data flows freely between the factory floor and the enterprise, enhancing decision-making and performance. However, this integration is complex due to differing priorities, cultures, and technologies between IT and OT teams.
The Four Types of IT/OT Convergence
Hardware Convergence in Manufacturing: Hardware convergence involves integrating operational technology (OT) devices and systems with information technology (IT) infrastructure through the addition of network connectivity. This convergence allows OT devices such as PLCs, sensors, controllers, and even actuators used in manufacturing processes to communicate directly with IT systems. It enables centralized monitoring, control, and data acquisition across the manufacturing environment. Hardware convergence aims to enhance operational efficiency, reduce downtime, and enable real-time decision-making by leveraging IT capabilities to manage and optimize OT assets.
Application/Software Convergence in Manufacturing: Application/software convergence refers to the integration of enterprise software systems, typically used in IT environments (such as ERP, CRM, and PLM), with operational technology systems (such as MES and SCADA) used in manufacturing. This convergence enables seamless data flow and interoperability between IT and OT systems, facilitating synchronized business and operational processes. It enhances visibility, efficiency, and responsiveness by ensuring that critical data from manufacturing operations is integrated into broader business systems, enabling informed decision-making and adaptive management of production processes.
Data Convergence in Manufacturing: Description: Data convergence involves consolidating and integrating data from IT and OT systems into a unified data architecture. It aims to harmonize diverse data sources, including customer data, market trends, production metrics, and equipment performance data. By integrating these data streams, organizations gain comprehensive insights into both business operations and manufacturing processes. Data convergence supports advanced analytics, predictive maintenance, and proactive decision-making, driving operational improvements, cost efficiencies, and competitive advantage in manufacturing.
Process/Workflow Convergence in Manufacturing: Process/workflow convergence focuses on aligning and integrating IT-driven business processes with OT-driven operational workflows within the manufacturing environment. This convergence aims to streamline and optimize end-to-end processes, from order fulfillment and production scheduling to inventory management and quality control. It ensures that activities across the manufacturing value chain are synchronized, automated, and managed cohesively. Process/workflow convergence enhances agility, scalability, and responsiveness by enabling organizations to adapt quickly to market changes, optimize resource allocation, and meet customer demands effectively.
According to The Manufacturer's IT & OT Convergence Research Report - Just 23% of manufacturers have achieved more than a basic level of IT and OT convergence. In addition:
77% have at least 50% cloud-based infrastructure
49% basic integration with supply vendors
25% still choose to air gap plant operations from enterprise IT
17% fully integrated supply and production transparency
6% fully integrated and with an understanding of the financial impact
2% unsure
Unclear Ownership and Funding
One of the biggest hurdles is the cultural divide between IT and OT departments. Historically, these teams have operated in silos, each with its own set of practices and technologies. Overcoming this divide requires a unified vision and a collaborative approach to strategy development. It's about creating a digital handshake that enables seamless data flow and insights across the organization. 25% of companies stated they did not know who is architecting their convergence strategies, or that ownership hasn’t been clear. Similarly, 29% of manufacturers are unsure or unclear about who is funding these initiatives. These statistics highlight the critical need for well-defined roles and responsibilities to ensure effective strategy development and execution. However, it’s encouraging to note that 31% are funding these initiatives from a central budget, highlighting its strategic importance.
However, the journey doesn’t stop at implementation. Continuous improvement and adaptation are key. As the global economy evolves, so too must the strategies that underpin manufacturing operations.
References:
The Manufacturer - IT & OT Convergence Research Report: Bridging the Gap Between the Enterprise and the Shop Floor:
https://info.themanufacturer.com/it-ot-convergence-research-report-2022
