Information technology (IT) and operational technology (OT) are merging more and more. However, not every company regards this as a positive trend. Some of the critics are right, though, because IT/OT convergence poses a number of challenges for companies in the chemical, pharmaceutical, cosmetics, and food industries.
At the same time, it offers a number of advantages that have a positive impact on companies' resilience and production capabilities. In this blog post, we highlight the many benefits of IT/OT convergence in the process industry.
What Is IT/OT Convergence?
IT/OT convergence refers to the integration of information technology (IT) and operational technology (OT) within a company.
The convergence of these two areas means that IT and OT systems are connected and coordinated to create a consistent and efficient operating environment. Integrating the two technology areas leads to a seamless connection between digital data processing systems and physical production processes.
This has many benefits, such as improved data availability, increased security, optimized processes, and better decision-making using advanced technologies such as the Industrial Internet of Things and artificial intelligence. Let's take a closer look at some of them.
Would you like to discover more about the opportunities, risks, and implications of IT/OT operations? Read our introductory white paper entitled “The Merging of Two Worlds: IT/OT Convergence in the Modern Process Industry”.
Stable production with less downtime
Production machine downtime is a costly nightmare for any manufacturing company. The close link between IT and OT reduces this risk of downtime in OT and increases security. Unlike the traditional separation of IT and OT, cybersecurity is integrated into production right from the very outset. The availability of all applications and systems is enhanced by these end-to-end cyber security concepts.
In addition, IT/OT convergence leads to an increase in service quality and higher availability of production systems. More efficient service and fault management as well as a higher degree of standardization also have a positive impact on operational processes. This way, the organizational convergence of IT and OT ensures long-term, sustainable operational and production capabilities.
Harmonized corporate landscape
IT/OT convergence makes it possible to seamlessly connect systems and processes, leading to greater transparency and collaboration. Imagine if your company could collect and analyze data from different production facilities in real time. You could use this data to monitor plant performance, identify bottlenecks, and optimize production processes. How much more efficient would your operations be?
Another positive effect of the harmonized process and system landscape is the improved collaboration between different departments and teams. And this doesn't just apply to the IT and operations departments. Your service and sales teams would suddenly speak the same language and have access to the same information and resources. For example, you could leverage this dynamic to optimize delivery times and respond more quickly to customer inquiries.
Use of data flow, IIoT, and AI applications
By linking IT and OT, IIoT (Industrial Internet of Things) applications and AI applications can also be integrated. This combination creates entirely new possibilities. Companies can better utilize the data flow from production facilities and other systems – for example, for making informed decisions and avoiding errors. For instance, use machine learning to identify patterns in production data and to alert you early on to potential failures or quality issues. By predicting maintenance needs and performing preventive maintenance, you can further reduce downtime and optimize production performance.
Or let’s take another example from logistics: by integrating IIoT sensors in delivery vehicles, you can collect real-time data on location, speed, fuel consumption, and vehicle condition. This data could then be analyzed in real time to optimize routes, plan deliveries, and minimize fuel consumption. Linking IIoT data with AI applications enables predictive analytics, allowing you to anticipate potential delays and implement countermeasures in good time.
Optimization of intercompany processes
IT/OT convergence also makes it easier to optimize cross-company processes such as supplier communication, order processing, and inventory management. For example, your chemical company could install sensors in its storage containers to monitor the fill level of chemicals in real time. When the level reaches a certain threshold, the system will automatically trigger an order to the supplier to replenish the stock. By automating this process, supply bottlenecks become less frequent and the continuity of production more secure.
Do you run a pharmaceutical company with several sites? If so, you can use IT/OT convergence to optimize cross-company processes, particularly in the area of pharmaceutical production and delivery. By integrating IT systems with OT devices in the production facilities, you can monitor and control the manufacturing process from start to finish.
Sensors in the production facilities provide information on production progress and the quality of the medicines, while ERP systems automate warehouse management and order processing. This allows you to more accurately predict the demand for medicines in the sites and ensure that the right products are delivered to the right place at the right time.
New: Free white paper on IT/OT convergence in the process industry. Learn about the crucial role ERP systems play in the successful implementation of this approach.
We Are PART of the Solution
IT/OT convergence in your company starts with an ERP system. Do you already have one in place? Does it meet the requirements for integrated IT/OT operations, such as real-time data processing, interfaces, and scalability to large data volumes? It is worth checking all this and, if necessary, switching to a more modern, more suitable ERP system.
For more than three decades, PART has been at the forefront of innovation with best-in-class solutions. We support you in digitalizing critical processes in your company, making you ready for Industry 4.0. Our ERP systems are precisely tailored to the requirements and challenges of the process industry. We look forward to advising you!