{"id":10323,"date":"2022-07-26T08:49:45","date_gmt":"2022-07-26T15:49:45","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10323"},"modified":"2022-07-26T08:51:36","modified_gmt":"2022-07-26T15:51:36","slug":"a-winning-formula-for-it-ot-convergence","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2022\/07\/a-winning-formula-for-it-ot-convergence","title":{"rendered":"A Winning Formula for IT\/OT Convergence"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10324&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">The greatest minds in manufacturing and technology have been swapping strategies, tips and tricks for enabling operational technology (OT) and information technology (IT) convergence for years. For most organizations, however, that \u201cAha!\u201d moment has yet to materialize, and many leaders are wondering if and when they\u2019ll finally close the IT\/OT gap and achieve Industry 4.0 connectivity across their operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I have previously shared my <\/span><a target=\"_blank\" href=\"https:\/\/embeddedcomputing.com\/application\/networking-5g\/will-2021-finally-bring-together-it-and-ot\" rel=\"noopener\"><span style=\"font-weight: 400;\">predictions for IT\/OT convergence<\/span><\/a><span style=\"font-weight: 400;\">, but the issue is still extremely relevant and perhaps more important than ever in today\u2019s post-COVID environment. More industrial \u201cthings\u201d are on the internet than ever before and real-time access to secure data is absolutely critical for quick, accurate decision-making.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s easy to blame the IT\/OT gap on either side of the coin, but the truth is that IT\/OT convergence has <\/span><i><span style=\"font-weight: 400;\">always<\/span><\/i><span style=\"font-weight: 400;\"> been possible \u2014 and still is today. The problem isn\u2019t with specific assets or how they\u2019re being implemented. The real issue is that most companies are approaching convergence all wrong. So, let\u2019s discuss why.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is IT\/OT Convergence, Really?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Gartner <\/span><a target=\"_blank\" href=\"https:\/\/www.gartner.com\/en\/information-technology\/glossary\/it-ot-integration\" rel=\"noopener\"><span style=\"font-weight: 400;\">defines<\/span><\/a><span style=\"font-weight: 400;\"> IT\/OT convergence as \u201cIT\/OT integration\u201d, which makes sense because convergence is the integration of OT assets like MES or SCADA that control physical processes with back-end software and hardware. Think ERP, business finance and PLM.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As I state in my predictions for IT\/OT convergence article, \u201cIT\/OT integration is the end state sought by organizations (most commonly, asset-intensive organizations) where instead of a separation of IT and OT as technology areas with different areas of authority and responsibility, there is integrated process and information flow.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sounds good. And it is, because when IT and OT work together, companies can expect benefits such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A less siloed IT and OT environment where the departments work together using a shared set of standards and platform<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Faster time to market for new products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">IoT devices enabling deep evaluation of critical resources and associated downtime<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A reduction in operational and development costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improved visibility and auditing, which streamlines regulatory compliance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">OT sharing maintenance data in real-time and supporting automation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deploying OT resources more efficiently to cut down on energy and resource consumption<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The benefits are clear, yet IT\/OT convergence remains elusive for many companies. Here\u2019s why.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">IT\/OT Convergence isn\u2019t a Technology Problem \u2014 It\u2019s a Business One<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Approaching IT\/OT convergence from a technology perspective makes sense at first glance. After all, the first thing a manufacturer wants to know about any potential IIoT platform, edge computer or middleware is: <\/span><i><span style=\"font-weight: 400;\">Can it ubiquitously and securely bring any and all the data from everywhere all the time?<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">This question is rooted in the belief that data is everything. Data is extremely important, but anyone who has ever had to make a decision on the fly knows the truth: The right data outweighs big data every time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Manufacturing is one of the most data-intensive industries. There are hundreds of machines on the factory floor and they generate about <\/span><a target=\"_blank\" href=\"https:\/\/www.techerati.com\/the-stack-archive\/data-centre\/2018\/05\/14\/smart-manufacturing-factory-automation\/#:~:text=devices%20will%20create.-,The%20performance%20logs%20from%20a%20single%20works%20machine%20can%20generate,than%20300%2C000%2016%20GB%20iPhones!\" rel=\"noopener\"><span style=\"font-weight: 400;\">5 million gigabytes<\/span><\/a><span style=\"font-weight: 400;\"> of data every week. That\u2019s an incredible amount of data and, realistically, most of it is probably irrelevant. Too much of the wrong data can also be a problem, especially when it comes to getting specific information fast.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, organizations need to think about how they plan to apply that data \u2014 and that\u2019s where the need for a change in culture starts to become clear.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Security Has to be Part of the IT\/OT Convergence Discussion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">This goes without saying, but the issue has to be raised because security can be a significant barrier to progress when approaching IT\/OT convergence from a technology perspective.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s not to say security isn\u2019t essential. It\u2019s just that IT and OT assets face different threats and, as I mention in my earlier article, \u201cadherence to an unimpeachable technical approach to the IT \/ OT duality can at best slow down progress toward a workable solution and at worst scuttle the entire opportunity.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><a target=\"_blank\" href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/global\/Documents\/Risk\/gx-deloitte-managing-the-successful-convergence-of-it-and-ot.pdf\" rel=\"noopener\"><span style=\"font-weight: 400;\">report<\/span><\/a><span style=\"font-weight: 400;\"> from Deloitte shares the same sentiments. From a security perspective, \u201cIT\/OT convergence is not a technical problem. The challenge is in overcoming culture and governance issues, which are difficult to get right,\u201d states the team from Deloitte.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">OT and IT security teams are afraid OT\/IT convergence will bring them into the \u201csecurity wild west,\u201d says Deloitte. \u201cAs a result, IT\/OT convergence needs to be a business initiative, rather than a separate IT or OT project.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">IT\/OT convergence, done right, should enable a higher level of security across an enterprise \u2014 not stall progress. Top-down leadership is required and this, again, becomes a conversation about a change in culture.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">An Application-Centric Approach to IT\/OT Convergence<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">No relationship is perfect all the time, but an issue here or there is less likely to snowball into a major problem if everyone involved understands and respects the other parties\u2019 unique needs and perspectives. The same is true for IT and OT integration projects, which is why applications are a great place to start.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Applications like <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/cloud-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">ERP<\/span><\/a><span style=\"font-weight: 400;\"> and PLM are usually acquired by IT, but extend into the OT environment. With an application-centric approach, IT and OT groups can minimize friction and unlock the greatest benefits of convergence.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">IT and OT groups utilize the same applications but perceive them differently. The IT culture of centralization is a driver for standardization, which streamlines maintenance and support while increasing efficiency. This desire for uniformity and centrality, however, doesn\u2019t translate well to an operational environment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Per my predictions article, \u201cOne size fits all mentality runs counter to the individual plants\u2019 reality. The day-to-day operations are based on the job at hand. The activities needed to produce a product grow out of and up from the processes necessary in that manufacturing.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The desire for a comprehensive approach can often be a hindrance. These types of projects often start with a spreadsheet with a row for each piece of equipment. In most cases 80% of the benefits are associated with a handful of critical resources. It feels unnatural for an engineer to exclude equipment from the approach but the diminishing returns to be all inclusive should be heeded.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are, however, many non-equipment centric aspects of an operational application that work well in different operational environments. An organization, for example, could capture and report progress in the order fulfillment process across multiple facilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cExtending the ERP solution to facilitate this operational activity can both provide the centralized group (IT) real benefit and will be accepted by the plants (OT) because it requires minimal tailoring to an existing required activity.\u201d I go on to say, \u201cThis approach will create mutual value and avoid the friction based on a centralized edict to use a common <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/06\/you-asked-we-answered-mes\" rel=\"noopener\"><span style=\"font-weight: 400;\">MES<\/span><\/a><span style=\"font-weight: 400;\"> that does not match the individual plants reality.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A granular, application-centric approach to convergence can help companies realize tangible benefits and identify additional opportunities for integration. Predictions for the future aside, IT\/OT convergence has <\/span><i><span style=\"font-weight: 400;\">always<\/span><\/i><span style=\"font-weight: 400;\"> been feasible and still is. Leaders just need to focus on the job at hand.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10324&#8243; img_size=&#8221;full&#8221;][vc_column_text]The greatest minds in manufacturing and technology have been swapping strategies, tips and tricks for enabling operational technology (OT) and information technology (IT) convergence for years. For most organizations, however, that \u201cAha!\u201d moment has yet to materialize, and many leaders are wondering if and when they\u2019ll finally close the IT\/OT gap and achieve [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":10324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[112,568,94,2272,2273,156,1402,2271],"class_list":["post-10323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-erp","tag-information-technology","tag-iot","tag-it-ot-convergence","tag-it-ot-integration","tag-mes","tag-operational-efficiency","tag-operational-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Winning Formula for IT\/OT Convergence | QAD Blog<\/title>\n<meta name=\"description\" content=\"The IT\/OT gap issue isn\u2019t with specific assets or how they\u2019re being implemented. 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He enjoys comedy and all things funny until he is the subject of the joke. He and his wife live in Wilmington, North Carolina where their grown children intermittently visit and their pets rarely stray.\",\"url\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/author\\\/gfg\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Winning Formula for IT\/OT Convergence | QAD Blog","description":"The IT\/OT gap issue isn\u2019t with specific assets or how they\u2019re being implemented. 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