Welcome!

Video Authors: Elizabeth White, Yakov Fain, Liz McMillan, Dan Ristic, Jnan Dash

Related Topics: @ThingsExpo, @CloudExpo, @BigDataExpo

@ThingsExpo: Article

Converging IT and OT at the Speed of the IoT | @ThingsExpo #IoT #M2M

A recent study showed that 40 percent of companies at the top of their industries will be replaced in the next 10 years

Converging IT and OT at the Speed of the IoT

The rolling thunder of digital transformation waits for no business. It will make short work of any organization that does not evolve rapidly. CEOs must quickly define where their organizations can compete for success and lead them on that journey. If they can't-or won't-change, they risk fading away like the slow-moving dinosaurs confronted with a habitat-destroying meteor.

The IoT's Precipitous Changes
Leading analyst Gartner forecasts that 8.4 billion connected things will be in use worldwide in 2017, up 31 percent from 2016, and will reach 20.4 billion by 2020. There is already $1.9 trillion dollars' worth of economic value related to the sale and usage of IoT technology.

The impact crater of this technology shift must not go underestimated. A recent study showed that 40 percent of companies at the top of their industries will be replaced in the next 10 years. Yet, the same survey found that 45 percent of respondents do not think digital disruption is worthy of attention from their organization's board of directors.

This attitude is perilous. Just consider these examples:

  • AirBnB, Uber and Lyft are transforming how people book lodging and arrange transportation, putting enormous pressure on the hospitality and taxi industries.
  • The iPhone blew the former market leader off the map.
  • Additive (3D) printing threatens marine and overland cargo shipping companies.
  • As the photography market swung toward digital, the reign of film-based camera companies ended.

There are bright spots for agile companies, however. With the launch of Pokemon Go and its massive recent Apple partnership, Nintendo boosted its relevance by establishing a strong mobile platform.

Rapid change requires that industry leaders proactively plan. Would you rather be Netflix or Blockbuster? Nearly 30 percent of businesses worldwide have already begun limited IoT deployments, according to Strategy Analytics' IoT 2015 Deployment and Usage Trends survey. For organizations that have not yet begun, it's not too late to embrace digital transformation - but they must act now.

Turning the Ship Around
The IoT opens up new worlds of possibilities because organizations now can extract data from network-connected devices and sensors. This data was never available before. Insights from this data can add enormous value to organizations. But companies must reshape their current infrastructures in order to use their data effectively. And they must hire and train the right people to bring their digital change strategies to fruition.

The traditional siloes of information technology (IT) and operational technology (OT) are getting shaken up by the IoT. These two were once separate and did not often communicate with each other. Now they must come together. It's a huge and critical step in the digital journey. The rub? Most do not know how to merge IT and OT. Neither IT nor OT professionals fully grasp converged IoT networking. They do not understand industrial IoT security. They are not fluent in endpoint data management and analytics. And they are not at all certain how the preceding will add value to their organizations. How will it lead to new business models? Or new services and revenue sources?

It will take new talent and the right training to update the skills of existing staff and to find answers to these questions. Connecting 20 billion machines and devices is a huge task. The World Bank predicts that over the next decade, there will be 2 million unfilled information and communication technology (ICT) -related jobs worldwide. There will be a global need to train 220,000 new control engineers every year for manufacturing plant operations alone.

The IT department, known for its information processing duties, is better positioned to take the lead in the digital journey. Data from IoT connected devices will create new information to parse, interpret and monetize. But IT must collaborate with OT during the transition. After all, many of the sensors, devices, operations and software that comprise the IoT reside in the OT side of the organization.

Consider, for instance, a steam valve system that controls water flow through a cooling apparatus. It operates within the OT domain and will continue to operate in the OT domain. In the past, manual intervention was required to take its readings and make decisions. Now, in an IoT environment, data from the apparatus is collected, analyzed and acted upon via the interconnected network and IT software. Solving for manual intervention, data generated from OT-managed devices and sensors is delivered across the IT system to take critical, real-time action.

How the IoT Benefits OT
IoT advocates need to make a strong business case for its benefits to OT and the organization as a whole. For example, the IoT could boost corporate profits worldwide by 21 percent in 2022.

Safety and comfort are also IoT benefits. Connected sensors and devices can measure and manage hazardous places at no risk to human beings. The IoT can also regulate the organization's physical surroundings to control energy costs and boost comfort.

Yet another benefit of the IoT is efficiency. It will handle routine tasks like reporting misconfigurations and errors as they occur on automated assembly lines. The result? Higher yields and less downtime, which improves profits. Better decision-making is also possible due to the IoT. Pulling trends from empirical data removes assumptions from the process. The ability to view how the system behaves can yield new insights and ideas.

Over the long term, IoT data analysis holds great potential for new revenue opportunities. In the short term, the IoT's immediate effect is lower costs and increased efficiency. All departments will benefit from the IoT. However, in a major cultural shift like this, OT executives must align with current IT initiatives in addition to breaking out of existing silos. It is a tall order.

Skilled Workers in Short Supply
To make the order even taller, OT executives are facing a major talent gap. Additionally, executives lack a process or industry-approved framework for quantifying the skills needed to perform IoT job roles. Insufficient staffing and lack of expertise is the top-cited barrier for organizations currently looking to implement and benefit from the IoT, according to research from Gartner.

Further, the State of IoT 2015 Global Developer Study found that 51 percent of developers and chief information officers surveyed say they are uncertain they have the skills or resources to deliver on the promise of the IoT.

Lessons Learned
Investing in the IoT is investing in the future. Let's explore how to lay out and follow a roadmap to a successful IoT strategy. Successful digital journeys arise from two factors. The first is leadership. Organizations need to hire a digital champion with a firm IoT vision and the enthusiasm to motivate employees to make huge changes in systems and processes. CEOs recognize the importance of tying workplace culture to behavior, with 41 percent making changes to this aspect of their talent strategies. Indeed, companies that take bold actions to align their value proposition, capabilities, products and services together view their culture as their greatest asset.

Updated skills is the second factor. Seventy-two percent of the CEO respondents in the 19th PWC annual Global CEO Survey reported that the availability of key skills is a concern. Both IT and OT need digital expertise. Training staff in this new expertise is essential for organizations to avoid the meteor and thrive in their digital transitions.

No business wants to go the way of the dinosaur. Organizations understand that in order to succeed in today's environment, they need to overcome traditional siloes by bringing together IT and OT to truly get the most out of their IoT efforts.

More Stories By Sudarshan Krishnamurthi

Sudarshan Krishnamurthi is a senior manager, Business Strategy, at Cisco Systems with over 20+ years of experience in the technology industry. He leads the Business Strategy function for Education Services within Cisco. He also leads the Strategy and Portfolio Workgroups for the IoT Talent Consortium, which is an industry initiative to address the IoT skills gap and the career trajectories of the future. He has worked with many industry partner, including Rockwell Automation and Panduit, to help create the first skills-based training and certification program focused on IT and OT convergence on the industrial plant floor. Through this program, Rockwell and Cisco have jointly trained and certified more than 1,000 individuals.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organi...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Datanami has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and thei...
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
SYS-CON Events announced today that TechTarget has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effi...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...