Bridging the Gap: The Convergence of IT and OT in Industry 4.0

Bridging the Gap: The Convergence of IT and OT in Industry 4.0

Right now, experts far and wide acknowledge that we are in the midst of a fourth industrial revolution, dubbed “Industry 4.0“, which is upending many of the ways that manufacturers and other businesses have historically operated. At the heart of this trend is the introduction and adoption of a slew of new technologies, including new data systems, AI, and IoT hardware. However, taking advantage of everything that Industry 4.0 has to offer is not a plug-and-play affair. Under the hood, it is forcing businesses to find a way to bridge a gap between two distinctly different types of technology.

First, there are well-known and well-understood technologies that make up the core of a typical company’s information technology (IT) infrastructure. Then, there is all the new technology working its way into manufacturing processes and other real-world situations, known as operational technology (OT). To make the most of both, businesses need to find the best ways to integrate the two, creating a beneficial convergence that drives efficiency and bottom-line results.

Of course, that is no small task. To assist, this article discusses the convergence of IT and OT, provides examples of it in action, and outlines the benefits businesses might derive from it. Let us dive right in.

What Is IT/OT Convergence?

For a long time, there was a clear and distinct dividing line between IT and OT within business operations. Nowhere was this more obvious than in the manufacturing sector. That was because most operational technology in that sector was mechanical and featured little in the way of computerization. However, beginning in the 1970s, that all started to change. Manufacturers began deploying things like memory-programmable controls and robotic systems capable of partial automation. Over time, those systems evolved, gradually giving manufacturers the ability to automate almost every aspect of their production processes. However, automated factory systems generally operated without any connection to their owners’ IT systems, even as the latter also grew in sophistication, complexity, and capability.

Today, all of that is changing due to the introduction of a plethora of connected sensors, data collection technology, and factory-floor network connectivity. As a result, it is now possible for manufacturers to create digital twins of entire production lines. Better still, those digital twins can make use of real-time data streaming from the sensors embedded in their real-world counterparts. This makes it possible for planners to model changes in production processes and test them without interrupting real-world operations. The sensors also enable IT systems to analyze data to predict equipment failures or pre-diagnose problems to shorten downtime.

In a nutshell, that is the essence of IT/OT convergence—it is the interconnection of other physical systems to facilitate smarter processes, greater efficiency, and better decision-making. This type of convergence is not limited to manufacturers, as we will soon illustrate.

Examples of IT/OT Convergence in Action

It is possible to find examples of IT/OT convergence in a variety of major economic sectors. The most obvious among these is the manufacturing sector, which includes some of the examples discussed above. However, that is only the beginning.

You can also find examples of IT/OT convergence in the retail industry. There, businesses can use an array of sensors and other real-time data to inform inventory decisions. For example, they could track product popularity in different retail and geographic locations to optimize everything from local inventory to pre-orders and even store hours.

Moreover, examples of IT/OT convergence are present in the transportation and shipping industry, as businesses collect data at every point of their logistics chain. Perhaps the most well-known example of this is within Amazon’s in-house logistics and delivery infrastructure. It is evident in the very design of the eCommerce giant’s new electric delivery vans, which come with an array of built-in sensors. These sensors enhance driver safety while also providing information for Amazon’s real-time delivery route planning and longer-term infrastructure planning.

The Benefits of IT/OT Convergence

Pursuing IT/OT convergence promises a wealth of benefits for businesses. These include helping identify new opportunities for automation, supporting the rollout of automation solutions, promoting transparency, and providing visibility into every part of a business’s operations. This makes finding and fixing potential problems easier and faster. Moreover, it generates huge amounts of data that businesses can use to fine-tune their processes or even overhaul them entirely.

Overall, IT/OT convergence tends to lower costs for most businesses, as it improves efficiency and prevents downtime. Moving to a predictive equipment maintenance system alone can generate significant savings by eliminating unnecessary scheduled maintenance tasks. Additionally, the data and analytics capabilities implied by a converged IT/OT infrastructure can help businesses design new products, create new pricing models, and even spark ideas for entirely new services.

The Challenges Inherent in IT/OT Convergence

While businesses have much to gain from IT/OT convergence, it does not mean that their path to it is a simple one. There are various challenges that most businesses will face along the way. One of them is finding ways to transform their often-siloed business processes into open, interoperable ones. This can be both a technological challenge and a human one, with some employees resisting sharing their hard-won expertise for fear of being replaced or automated out of existence.

Another significant challenge is the massive cybersecurity issue created by the adoption of IoT and the vast amounts of data it generates. This alone can impose substantial upfront costs on any IT/OT convergence strategy. Moreover, the costs of failing the challenge are even greater. This challenge also plays into another aspect of IT/OT convergence: systems integration.

The reality is that businesses often have two routes to take when it comes to systems integration. They can either incorporate the data and controls that come with their new OT systems into preexisting IT systems, or they can opt for a brand-new IT system built to accommodate their OT needs from the beginning. Where the former is possible, it is typically somewhat costly and has an uncertain outcome. The latter, by comparison, eliminates much of that uncertainty but comes with a much larger price tag attached.

A Trusted IT/OT Convergence Partner

At this point, it should be quite clear that businesses in various industries have much to gain—and potentially lose—by pursuing an IT/OT convergence strategy. However, the odds of reaping the rewards while sidestepping the pitfalls increase exponentially with an experienced partner helping with the task. Outsource IT has the experience and expertise to help create and implement smart IT/OT convergence strategies, offering as much or as little assistance our clients require. To learn more about how Outsource IT can streamline your business’s path to the converged future of Industry 4.0, contact one of our knowledgeable account managers today.

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