Back in 2011 Gartner advised (IT) leaders to prepare for the transition of their organizations to the converging, aligning and integrating of IT and OT environments.
With the Internet of Things that convergence is happening faster and at a broader scale than before and Gartner’s words become more actual than ever. In case you’re not familiar with the – by now – ‘good old’ IT versus OT debate: IT is what you think it is. Information technology or the corporate IT team, led by a CIO.
As you probably know the role of IT and of the CIO has been changing for quite some years now (with discussions on multiple forms of IT such as bimodal IT as Gartner calls it and the business role of the IT chief), among others due to the famous increase of IT spending by divisions other than IT itself (shadow IT).
IT and OT: a distinction that decreasingly is one
OT has nothing to do with all that but it does add to the discussions on the (future) role of the CIO and IT. OT stands for Operational Technology. As the word says it’s all the technology that you use to run the operational side of your business, traditionally with little IT involvement and in industries such as utilities, manufacturing, etc.
Think about all those high-tech machines on the factory floor, your fleet of trucks and anything that has four or more wheels and is used for highly technical purposes, drills, whatever fits in the context of your business activities.
The convergence of IT and OT has been going on for a while and there isn’t a strict division between them in the real world. In many businesses with lots of heavy machinery or other forms of OT, CIOs and IT departments will often be closely involved because of the critical role of all that technology, de facto technological convergence and integration (with the network being a first driver when many of these industrial assets started being seen as less stand alone than before) and the ways OT is being looked upon from the same view as IT in regards with, for instance, security.
Still, in some areas the distinction is clear. You won’t quickly see an IT worker repair a high-tech oil drill and, the other way around, you won’t see an engineer who takes care of the technologies to assemble cars, sit in a meeting on using predicitive analytics to protect the corporate network from cyberthreats. But, as said, the lines between both do blur and the Internet of Things is no stranger to that evolution.
How the Internet of Things brings IT and OT together
You can imagine why the whole debate on ‘IT versus OT’ or, more correct, the convergence of IT and OT, has been mainly held in specific industries and business functions. Think logistics, manufacturing and utilities, as mentioned.
When looking for an image and as way of an example we found this 2014 blog post, infographic and study by Siemens in the utility space where Siemens identifies cost and interoperability are the biggest challenges in the convergence of IT and OT but where the need to get IT and OT out of their separate and traditional silos in order to reap the benefits of advanced metering and smart grid systems is stressed.
Now, how does the Internet of Things come into the picture? In a previous post, on the advent of the DX economy, we looked at some predictions by IDC for 2016 and beyond (with beyond being that DX or digital transformation economy).
Among the ‘most fertile areas for DX’, as IDC puts it, will be the Internet of Things. That is probably not a surprise. As mentioned in previous contributions, the Internet of Things today de facto is mainly ‘happening’ in industrial environments such as manufacturing, transportation and utilities: the Industral Internet of Things (IIoT). It’s also ‘big’ in retail and healthcare. And it’s exactly in these industries (to be precise, manufacturing, transportation, retail, and healthcare industries) where, among others, IDC also expects most IoT development to happen, at least in the next few years and even if IoT devices and solutions, we quote, “have the potential to redefine competitive advantage in virtually every industry”.
Utilities are realizing that to reap the full benefits of advanced metering and smart grid systems, IT and OT must work together. More.
The link between the Internet of Things and the IT and OT debate is clear. After all, the IoT is mainly about automating processes using connected devices with a capacity to gather, receive and send information, embed intelligence and connectivity into devices and set up processes and applications that open up a realm of new possibilities with the proper tools to analyze data, automate and ‘write’ applications and develop APIs, putting these devices at work.
Managing the exploitation of IT and OT when IoT drives transformation
As we are talking information, networks, connectivity, data, ecosystems and apps, we are talking IT, especially as all this connectivity and certainly, data and information (IT still stands for Information Technology) needs to be managed, secured, stored, processed, routed, leveraged and so on.
In an ‘industrial’ context it’s not different. Obvious examples include robotics, smart tracking, smart meters and anything ‘smart’, automotive applications (your trucks and stuff with more than four wheels) and anything that can get connected in order to optimize processes, including on the level of production, logistics, energy and the likes.
It’s an environment where software and developers also find fertile ground (think connected cars and their software updates), as do IT experts with their knowledge of code (another big one in the evolution towards the DX economy according to IDC) but certainly also experts in typical IT areas such as security, a major concern in the context of IoT.
As we’re still relatively early in the whole IoT evolution but evolutions occur rapidly, the call for the convergence of IT and OT gets louder again. And this time it’s in more industries than the mentioned usual suspects.
So, it’s not a coincidence that IDC highlighted the integration of IT and OT at the technology, process, security and organization levels as a key success factor and key evolution/prediction in its IDC Internet of Things FutureScape 2016 webcast.
To get more data, understand the IT impact and get more guidance you can listen to a replay of the webcast.
In the meantime here is a quote from Gartner’s mentioned 2011 press release on the convergence of IT and OT: “With IT and OT converging, the scope of CIO authority may cater to the needs of planning and coordinating a new generation of operational technologies alongside existing information- and administration-focused IT systems”.
Gartner also stressed how the key change for CIOs may be that their role moves from leading the IT delivery organization to leading the exploitation of the business assets of processes, information and relationships across all technologies in the enterprise — IT or OT, whether delivered, supported, or managed by the formal IT organization or elsewhere.
Managing business assets: it’s so crucial that all the crucial business assets in this age of digital transformation also need the attention of the C-suite. When we talk data, information, security, customers, digital, service and transformation, we talk core business assets. Leading organizations know they need to enter the boardroom and have made security, transformation and customer experience, to name three important ones, a leadership issue with a seat in the boardroom.
It’s time to hold that debate on the convergence of IT and OT.
Top image purchased under license from Shutterstock