Thought Leadership

IT/OT convergence: Balancing agility and reliability

By Victoria Carlos

Information Technology (IT) and Operational Technology (OT) have long played pivotal roles in organizations, yet their functions and focuses have remained fundamentally different. Traditionally, OT has mainly operated on the factory floor, orchestrating machinery and ensuring the reliable and efficient operation of facilities. In contrast, IT primarily deals with the management of data, information and technologies that enable the processing, storage and communication between applications. While IT priorities agility and rapid innovation, OT emphasizes long-term reliability and robustness, often at the cost of flexibility.

However, by bringing these siloed worlds together through IT/OT convergence, companies can vastly improve their efficiency and performance while gaining a holistic view of their operations. Moreover, the fusion of IT and OT isn’t merely a trend but a strategic imperative. By merging these once separate domains, companies can create the blueprint for a new era—one that promises the potential for unparalleled growth and new opportunities.

Adapting to modern demands

The notion of IT/OT convergence isn’t a groundbreaking idea. For years it’s a concept that’s been contemplated but is only now seeing a push for widespread adoption thanks to recent advances in smart technology. IT/OT convergence allows for large quantities of data to be gathered from machines across the shop floor to be analyzed for important trends. However, in the past the infrastructure to support the cost effective and rapid acquisition of this data didn’t exist. Many industrial machines use proprietary data formats and programing languages, making integrating them into a network challenging, since unique solutions are required for each device. Now, thanks to adoption of IT systems designed to manage vast quantities of data quickly and efficiently, pared with IoT devices capable of interfacing with machines old and new, it’s possible to understand shop floor data in a time- and cost-efficient manner.

Acquiring data is only one part of the equation; equally crucial is the capacity to leverage that data to derive insights and create value. Bringing the data into the comprehensive digital twin allows easy real-time monitoring, testing of changes without interruption to production, and many other benefits. Deploying artificial intelligence (AI) systems, which excel at analyzing extensive data and generating actionable insights, enables seamless end-to-end optimization and predictive maintenance solutions. These capabilities were previously unattainable or impractical with OT technology alone.

Nonetheless, the fusion of IT and OT presents a notable challenge: a difference in perspective. IT is renowned for its agility and ability to keep up with recent technology, whereas the mantra of OT has always been reliability above all. OT legacy systems were built for endurance, not sprints. Yet, the commitment to reliability that was once the reason for OT’s success has now created slow progress amidst an environment that is undergoing rapid change—impeding companies’ ability to respond to today’s shifting market demands and conditions.

Fortunately, IT’s fast-paced perspective can be harnessed as a solution for OT. One of the key advantages of IT/OT convergence is the ability to collect and contextualize OT system data to discover insights that would’ve otherwise gone unnoticed. This holistic view enables companies to make data-based decisions, anticipate maintenance requirements and discover where performance can be optimized.

Benefits of infusing OT with IT practices

By adopting IT practices to enrich existing functionality, OT can become more flexible without compromising reliability or existing jobs. Here are some primary ways companies can benefit from an investment in IT/OT convergence.

  1. Innovation from top floor to shop floor: By introducing the agility and capabilities of software innovation to the shop floor through smart devices, sensors, and AI integrated with the digital twin, companies can access critical insights into their operations. This enables decision-makers to utilize key performance indicators (KPIs) and data analytics collected from each business unit, breaking down walls between siloed domains and allowing for optimization across the entire company.
  2. Supply chain resiliency: IT/OT convergence enables companies to unify all their data to better respond to and predict supply chain disruptions. With new access to insights generated from comprehensive data, workers can identify alarming supply chain trends before they occur, ensuring that alternative resources can be tapped into quickly. This invaluable information keeps production running, despite unexpected challenges.
  3. Advancing sustainability: Sustainable practices are increasingly important for all industries. The convergence of IT and OT facilitates the implementation of environmentally friendly initiatives as companies can more easily determine where sustainability can be improved across production. Additionally, factories have generally been slow to identify issues and just as slow to implement solutions. But with IT/OT convergence, changes can be executed faster, leading to reduced material waste and minimized energy consumption.

A balanced and connected future

IT/OT convergence represents a paradigm shift that companies can’t afford to overlook. The dichotomy between reliability and agility can be resolved through the strategic adoption of IT practices in the OT realm. As industries navigate an increasingly complex and dynamic landscape, the ability to adapt, innovate and overcome challenges is essential. By welcoming this unification of tradition and innovation, companies can not only preserve the reliability OT values but also enter a new era of flexibility, scalability and improvement.

Siemens Digital Industries Software helps organizations of all sizes digitally transform using software, hardware and services from the Siemens Xcelerator business platform. Siemens’ software and the comprehensive digital twin enable companies to optimize their design, engineering and manufacturing processes to turn today’s ideas into the sustainable products of the future. From chips to entire systems, from product to process, across all industries. Siemens Digital Industries Software – Accelerating transformation.

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