Four Benefits of IT / OT Convergence

In 2011, Gartner accurately predicted that the industrialized world would soon see operational technology (OT) and information technology (IT) come together in a common environment. This concept of merging previously isolated systems so that business intelligence can be shared and used more effectively was not new. It made sense for OT and IT to model this historically successful integration once the benefits of convergence were realized.

However, despite the emerging benefits, there is still clear resistance to the convergence of OT and IT. A recent Automation World article stated that the two departments "not only operate in different ways, but sometimes even have conflicting approaches." The key is to get management to highlight the benefits of this merger. The positive impact that convergence has on OT and IT is a great equalizer linking two different organizational cultures.

The four main benefits of IT / OT convergence are cost, productivity, productivity, and agility. Cost is often the most important benefit for OT and IT departments. For IT, cost means demonstrating and predicting profitability. For OT, cost is usually associated with the goal of reducing production costs. In both cases, cost savings have a positive effect on the bottom line of the organization.

Productivity and productivity are benefits that go hand in hand. Building a common platform where OT and IT data work together means organizations can generate accurate Key Performance Indicators (KPIs). These KPIs enable both parties to simultaneously pursue common goals and benefit from enterprise-wide visibility.

Once an organization gains more control over costs and begins tracking KPIs in real time, it can respond flexibly and flexibly. This means rapidly improving production schedules and making room for innovation — something that was difficult, if not impossible, to get started in an isolated IT and OT setting.

Let's look at an examples where all four benefits of IT / OT convergence come into play in a production environment:

OT systems are busy absorbing and making sense of large amounts of data coming from the shop floor, effectively tracking many moving parts that help determine things like productivity and inventory.

On the other hand, the company's IT systems collect data about which products are languishing in shopping carts and what the likely conversion rate for those customers is. They then use this forecast data to determine current and future market demand.

Prior to the IT / OT convergence, this data was usually exchanged between these departments on a calendar basis. Perhaps a quarterly review where IT systems provide data that will be used to determine future inventory requirements, and OT systems provide unit cost data that sparks discussions about prices and margins. After integration, both parties now exchange this data in real time.

The less-than-stellar quarterly report may have previously pushed the manufacturing side to quickly cut production costs. This reactionary approach could negatively impact wages, safety, and a host of other issues. However, since manufacturing can analyze and respond to things like the day-to-day demand for inventory, there is more room for strategic thinking about cost reduction.

In an IT / OT integrated environment, the IT department can provide a broader picture for key decision makers. Reports on the impact of material cost increases on existing margins. Empower your organization to respond proactively, perhaps adjusting its marketing strategy to focus more on promoting a product with lower operating costs for the rest of the quarter.