IT Vs. OT Blame Game

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Jul 29

Ever feel like IT and OT departments are starring in a manufacturing sitcom? You know, one where the techies and the operators just can’t seem to get on the same page?

Well, according to a LinkedIn poll I conducted in June of 2024 with 411 respondents, the IT/OT blame game is alive and well:

14.2% of IT folks blame themselves.
23.6% of IT folks point fingers at OT.
26.2% of OT folks take the blame.
36.0% of OT folks blame IT.

So, it’s almost a perfect split: 50.2% blame IT and 49.8% blame OT!

The technological barriers between Information technology (IT) and Operational Technology (OT) have been breaking down for years, yet full integration remains a challenge for most companies. In 2023, IT and OT (Operational Technology) convergence is more than a buzzword—it's a strategic imperative for nearly all organizations. A 2023 Foundry survey reveals that 98% of organizations were prioritizing IT/OT convergence last year to achieve improved operational control, higher-quality products, reduced risks, and sustainability.

Why are companies resistant to IT/OT convergence?

There are several reasons. One is that different people with different skill sets have historically managed these two areas of the business. Converging them would require cooperation between these two groups, which can be difficult. Another reason is that companies are afraid of the upfront costs associated with converging IT and OT - this includes security, integration, and connectivity. However, while some initial investment may be required, the long-term benefits far outweigh the short-term costs.

Why It Matters

Manufacturing and retail sectors face a host of similar challenges, ranging from supply chain management to inventory control and data security. To navigate these complexities and drive meaningful business outcomes, companies need to innovate in how they handle data, integrate environments, and manage users. Converging IT and OT systems offers a path to overcome these challenges effectively.

Common Challenges:

Supply Chain Issues: Ensuring seamless operation from raw material sourcing to final product delivery.
Inventory Management: Balancing stock levels to meet demand without overstocking.
Data Security and Compliance: Protecting sensitive information and adhering to regulations.

Investment Priorities

Organizations are making substantial investments in several key areas to support IT/OT convergence according to Foundry. Key areas of investment around IT/OT including currently investing and planned investment:

96% Data security (74% currently investing, 22% planned investment)
93% Cloud native application platforms (61% currently investing, 32% planned investment)
89% Virtualization technology (52% currently investing, 37% planned investment)
88% Edge-ready processors (44% currently investing, 44% planned investment)
85% AI/ML (45% currently investing, 40% planned investment)
85% Computer vision (43% currently investing, 42% planned investment)
84% Robotics (39% currently investing, 45% planned investment)
82% Digital twin technology (37% currently investing, 45% planned investment)
82% Data lakes (34% currently investing, 48% planned investment)

Benefits of IT/OT Convergence

There are many benefits of integrating IT and OT systems including operational control and efficiency, improved product quality, better security management, increased sustainability, higher uptime, scalability, increased technological agility, among many others. However, the main benefit of IT/OT convergence in my opinion is that it leads to better and faster decision-making. When data from both IT and OT are combined, companies have a much better understanding of what's going on within their organization. This allows them to make more informed decisions that can improve efficiency and lead to cost savings. In fact, a case study of a global electronics manufacturer found after the first six months, the transformation effort generated more than 500 business initiatives enabled by more than 30 use cases across different value streams. In total, the company estimated that these use cases will have a yearly impact of more than $200 million.