IT and OT: So close, yet so far

Digitally advanced businesses realize that connecting their information technology (IT) and operational technology (OT) assets can release significant value. But new research from TeamViewer suggests that functions remain too far apart.

Almost two-thirds (64%) say that the lack of a comprehensive overview of IT and OT assets and data impedes the effective management of their technology infrastructure. Among industrial manufacturing companies, this figure rises to 71%.

By leaving the gap unbridged, organizations risk falling behind in terms of growth, operational capacity, and the competitive edge so critical in fast-changing industries.

Making a connection

For those organizations that can seamlessly connect their IT (computers and other hardware used for information processing and management) and OT (the machinery used to execute physical processes), the potential benefits are numerous:

• Reduced cost: Convergence improves resource utilization, bringing down costs.
• Increased revenue: Combining IT and OT data helps organizations to generate richer, practically applicable insight, and strengthen performance.
• Improved operational performance: IT and OT convergence enables predictive maintenance, reducing downtime.
• Greater agility: Access to IT and OT data supports organizations in reacting more quickly to market changes, amending production cycles accordingly.

Where organizations fall short, and why

This year’s ISG Provider Lens Digital Engineering Services report singles out the integration of IT and OT trend as “enhancing efficiency, innovation and competitive differentiation.” With so much to be gained – McKinsey describes IT/OT convergence as “the key to unlocking digital at scale” – the race to secure connectivity is on.

Yet TeamViewer’s latest research, based on responses from 500 businesses across six markets, suggests many organizations can go further.

In practice, a range of challenges obstruct IT and OT convergence. Some are technical. OT sensors and devices, for example, may be incompatible with existing IT networks; 45% of businesses say that they have achieved a unified architecture (e.g., combining OT assets with IT resources) to only some or a minimal extent.

Some issues are cultural, with IT and OT teams often working from different perspectives, with divergent responsibilities and priorities. Nine in 10 businesses say OT and IT are in at least some state of isolation from one another. When it comes to joint training and skills development, nearly half (47%) say the connection is effective to only some or a minimal extent.

Also, organizations are concerned about the greater attack surface and consequent cybersecurity vulnerabilities that could result from stronger IT and OT connectivity. They might point to a string of recent attacks by cyber criminals on industrial targets, many of which have focused on OT, rather than IT assets.

How to fix the problem

Given such challenges, closing the gap will require organizations to act on many fronts at once.

Above all, argues Mei Dent, Chief Product and Technology Officer at TeamViewer, this is an issue that requires strong leadership. A senior figure, such as a chief digital officer, can bring IT and OT teams together for common purpose. “IT and OT are usually two different budget centers, with two different signing processes,” she points out. “For companies that have chief digital officers, it becomes a little easier because they understand the challenges of unification.”

With IT and OT empowered to work together more closely – while being held to account on their progress – collaboration will drive convergence. “We have regular communication channels, joint meetings, and workshops,” says Vivek Sharma, Global Head of Partner Management at Bosch Digital, of the German industrial conglomerate’s efforts to get IT and OT teams working together. “It should never be a game of us versus them.”

Equally, technical compatibility between IT and OT is essential to the success of these initiatives. Leadership teams should develop investment and procurement strategies accordingly, adds Sharma. “We invest in integrated platforms and technologies that are helping to bridge the gap between IT and OT systems,” he explains.

“We choose solutions that support data exchange, interoperability and seamless integration between IT applications such as data analytics platforms, and OT systems such as sensor networks.”

Data compatibility should be a particular area of focus, believes Caroline Carruthers, CEO of global data consultancy Carruthers and Jackson. IT and OT teams must understand each other’s data needs, she argues. “You also need your data team to be a bit more business-literate,” she says. “The IT team, the OT team and the data team are all walking across a bridge. There needs to be a business commonality that sits in the middle.”

Finding common ground

It is key to focus on common objectives and KPIs. This is also how organizations will address their anxieties about cybersecurity, believes Sacha Porges, Global Director for Customer Quality and Programs at GKN Automotive, through development of common governance policies and aligned standards. “Whenever we have multiple systems interfacing with one another, we conduct a risk assessment together about the sensitivity of the data being received/transmitted and what level of security needs to be applied to it,” he says.

The bottom line? All involved need to keep an eye on the multiple prizes on offer, as TeamViewer CEO Oliver Steil argued in a presentation at the recent Web Summit in Qatar.

“If you have data analytics, if you optimize processes, and if you optimize the utilization of your machines, your goods flow, you can be faster, you can be more efficient, you can save costs and you have less people in the factory, which is very important at the moment with a shortage of skilled labor – you need to optimize as much as you can,” Steil suggested.