As industries continue to evolve in an increasingly digital world, the convergence of Information Technologies (IT) and Operational Technologies (OT) is becoming a key driver of innovation and efficiency. The concept of IT/OT convergence has long been recognized, but for many companies, it has remained more of a vision than a reality, with many companies facing obstacles in realizing its potential.
Several challenges have contributed to this state of untapped potential over the years. These have included a need for clarity in who has responsibility for the separate systems, a lack of the necessary skills to make projects a success, and struggles to secure the investment needed to power IT/OT transformation. However, a shift is underway.
New research commissioned by us, and conducted by Omdia has found that IT/OT convergence is accelerating across manufacturers. According to the study, 70% of OT systems will be connected to IT networks next year, up from 50% today, with 86% of manufacturers expecting business benefits from IT/OT convergence.
Global Head of Manufacturing at Telstra International.
What are the drivers?
This is a significant leap forward, and at the forefront is Industry 4.0. Nearly half (47%) of respondents highlighted it as one of the top three factors accelerating IT/OT convergence in the past two years. Business benefits manufacturers are targeting from Industry 4.0 include innovation (39%), reliability (38%) and profitability (34%).
Industry 4.0 too has been discussed for a number of years, yet many projects fail to get off the ground: the World Economic Forum found that more than 70% of companies investing in Industry 4.0 technologies fail to move beyond the pilot phase of development.
That could well be changing. Industry 4.0 needs critical enabling technologies such as cloud services, Industrial Internet of Things (IIoT), security platforms, and edge computing to work. These are now well embedded into enterprise IT stacks; this maturity and the attendant knowledge companies acquire increase the chances of successfully delivering complex projects.
After Industry 4.0, cybersecurity maturity (38%) and increasing resilience and availability (34%) were the next most important drivers. Four-fifths of manufacturing firms experienced a significant increase in overall security incidents or breaches last year, with attacks that targeted IT and impacted OT or operations more likely than vice versa.
What the results highlight is that an increase in digitalization brings with it an increase in cyber risks. Manufacturers need to digitally transform, and they know that requires IT/OT convergence, but they also need to reduce the risks of successful, disruptive attacks.
The use cases catching the eye in IT/OT
Interestingly, many manufacturers see IT/OT not just as a security concern but as a way of improving security. Nearly half (49%) of respondents ranked improved cyber and physical security as a top three use case for IT/OT in manufacturing, along with data sharing for deeper analytics (44%) and better integration of supply chain with manufacturing (36%).
How does IT/OT help improve security, if it’s also a potential source of threats? In many instances, it provides an opportunity to adopt a strategic security posture; rather than simply connecting bits of IT and OT, security can be integrated as part of a full process of IT/OT transformation.
It’s unsurprising to see data sharing for deeper analytics as a key use case; after all, one of the initial drivers of the IT/OT convergence movement was the realization that OT could be generating data that has wider business implications. Connecting the two types of technology is a way of getting data out of silos and into analytics that can turn it into actionable insights.
For example, sharing the energy consumption data of a specific type of machinery could provide the sort of granularity that helps a procurement team negotiate more relevant energy contracts, rather than receiving an overall figure from the operations department.
Plus, there’s the holy grail of efficiency: connecting manufacturing with supply chains. Continued disruption, whether political, economic, weather, or health, makes it increasingly hard to operate both resilient and lean supply chains. Problems affecting key transportation points, such as the Suez and Panama Canals, can blow holes in ‘Just In Time’ strategies, while ‘Just In Case’ approaches require stockpiling, which can be expensive.
Better integration between manufacturing and supply chains allows faster, more accurate decision-making; if a supply chain is suffering from disruption, a business can adjust manufacturing accordingly and attempt to mitigate any impact.
Steps to develop a sustainable and secure IT/OT strategy
To start off, manufacturers looking at accelerating their convergence efforts should consider the following:
1. Planning for integration: IT/OT convergence is not simply a case of adding a network to a factory and connecting it to corporate systems; it needs a strategic business plan that aligns objectives with intended actions.
2. Embedding security: a successful project will necessarily expand the attack surface, so security needs to be embedded throughout IT/OT transitions, not added as an afterthought.
3. Invest in capabilities: Like any transformation project, IT/OT convergence needs the right teams, the right tools, and the appropriate level of resources.
4. Define accountability: One of the stumbling blocks historically has been a lack of accountability and who is responsible for what. Decide where IT’s remit ends and OT’s remit begins, with any necessary overlap managed.
5. Establish standards: IT and OT are guided by different governance, risk, and compliance requirements. Establish the standards expected and deploy continual assessments to ensure they are met.
The future of manufacturing belongs to those who master secure, strategic IT/OT convergence. It’s not just a technical upgrade—it’s a competitive imperative that will define who leads, and who gets left behind.
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