Integrate Operational Technology

into IT plans

Kristian Steenstrup
Research VP and Fellow

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.
The Convergence of IT and OT:
A Critical Issue
By 2015, more than 70% of CIOs will oversee connected
performance of all digital technologies.

Factors driving this prediction Factors against this prediction

• Enterprise performance and
services increasingly demand
accurate, coherent and timely
information.
• The supporting technologies
must, therefore, be connected
and coherent.
• The technical characteristics of
IT and OT are converging.
• Credible, high-performing CIOs
and IT organizations are the
natural choice for this role.
• Estimated fewer than 30% of IT
organizations did this in 2009.
• Poor IT organization
performance and excessive
technology focus mean lack of
trust for the CIO to take on
business-critical issues.
• Poor governance and internal
politics impede progress toward
the integrated oversight of
information and processes.
Key Issues

1. What transformations of IT and Operational

Technology are creating convergence
between them?
2. What benefits should CIOs seek by converging IT
and OT organizations?
3. How should CIOs refocus their own roles in
relation to IT/OT intersection?
 IT and OT Are Similar But Have
Important Differences
IT OT
Purpose • Managing Information, • Managing Assets, Controlling
Automate Business Processes Technology Processes

Architecture • Transactional or Batch, • Event-Driven, Real-Time,

RDBMS or Text Embedded Software,
Rule Engines
Interfaces • Web Browser, Terminal and • Sensors, Coded Displays
Keyboard

Ownership • CIO and Computer Grads, • Engineers, Technicians

Finance, Procurement and LOB Managers

Connectivity • Corporate Network, IP-Based • Control Networks

(Increasingly IP-Based
and Wireless)
Examples • ERP, SCM, CRM • SCADA, PLCs, Modeling,
E-mail, EAM, Billing Control Systems
Embedded OT Components Create A
Changing Landscape

Fieldbus and IEC 61850 (UCA)

technologies for instrumentation
and control need self-discovery
and software-configurability tools.

Virtually every mobile

The typical plant has thousands asset today has data
of devices with some degree collection capability.
of embedded intelligence used Whether continuously
for real-time performance fed to the EAM
monitoring. application or via batch
upload, performance
data is being used for
predictive maintenance.

From vibration sensors, to

bearings with Bluetooth, to
microprocessor-based engine
controls, even mobile equipment
is now IT-dependant.
When Should IT Start Worrying
About OT?

Increasing Asset Sophistication

Embedded Embedded
Commercial OS Commercial OS
Embedded Embedded
+ +
Proprietary OS Commercial OS
Proprietary IP-Addressable
Access Access

Increasing CIO Involvement

The Convergence of IT and OT …
• … drives major changes in healthcare, transportation,
defense, energy, aviation, manufacturing, engineering,
natural resources, utilities, telecommunications and others.
• … changes the relative importance of IT management
disciplines for the IT organizations concerned.
• … means that IT departments must act now to avoid
damaging the value of IT and downgrading their role.
Key Issues

1. What transformations of IT and Operational

Technology are creating convergence
between them?
2. What benefits should CIOs seek by converging IT
and OT organizations?
3. How should CIOs refocus their own roles in
relation to IT/OT intersection?
Case Example: An Energy Utility Business
Gains Benefits Of Interoperability
IT OT
CIO Who fills this role?
Enterprise Vertical Centralized Distributed
• ERP • Geographic info • Supervisory control • Programmable logic
system (GIS) and data acquisition controllers (PLC)
• Human resources (SCADA)
• Outage management • Advanced
system (OMS) • Energy management protection relays
system (EMS)
• Enterprise asset • Sensors: For example,
management (EAM) • Automatic generation PQ monitors and
control (AGC) fault indicators
• Customer information
system (CIS) • Distribution Asset • Meters
Analysis (DAA)
• Energy trading and • Gateways/substation
risk management integration
(ETRM)

OT-enabled assets

Corporate IT Network Energy Control Network

Case Example: A Natural Resources
Company Improves Asset Utilization
IT OT
CIO Who fills this role?
Enterprise Vertical Centralized Distributed
• ERP • Enterprise asset • Supervisory Control • Programmable Logic
management (EAM) and Data Acquisition Controllers (PLC)
• Human resources (SCADA)
• Sales and Delivery • Remote equipment
• Joint Venture • Leaky Feeder Nets operations
accounting • Geological modelling • Sensors: Monitors and
• Mine to Market • MES Fault Indicators

• Billing systems • Mine Planning (LOM • Real Time Assay

and Block modelling)
• Stock Pile and quality
management

OT-enabled assets

Corporate IT Network Process Network

Case Example: A Healthcare Organization
Improves Patient Outcomes & Efficiency
IT OT
CIO Who fills this role?
Enterprise Vertical Centralized Distributed
• Enterprise Resource • Location and/or • Chief Medical • Healthcare
Planning (ERP) specialism based Informatics Officer professionals in
administration CMIO) specific disciplines
• Patient records (e.g. radiography,
• Specific interfaces – this role not
• Billing between diagnostic always present medical imaging, drug
• HR machines and central diagnosis, DNA
• Decision support analysis)
• Network backbone records systems
• Interfaces to external • Specialist suppliers
• Security standards
suppliers, other
agencies
• Access to professional
information networks

OT-enabled assets

Corporate IT Network Medical Network

Summarizing the Benefits of
IT/OT Integration
Costs Risks Speed Strategic
Advantage
Lower project costs Improved cyber Faster project Enhanced business
security implementation model

Reduced costs of Downtime Coherent standards Enhanced

software avoidance through simplify design and information for
procurement integrated upgrade build better decisions
testing
Reduced software Integrated technical Unified project New products and
licensing costs support teams with right services
skills
Reduce software Failure due to OT Integrated life cycle
support costs Software Mis- management
Management
Key Issues

1. What transformations of IT and Operational

Technology are creating convergence
between them?
2. What benefits should CIOs seek by converging IT
and OT organizations?
3. How should CIOs refocus their own roles in
relation to IT/OT intersection?
How CIOs Need to Refocus Their Roles
3 Critical Success Factors
• IT vision and performance
• People credibility, skills and disciplines
• Governance
• Re-expressing and recommunicating the role: Ensuring effective, coherent
and strategic use of all technology for enterprise business goals
• Governance and policies spanning IT and OT
• Results through strategy and influence, not necessarily through direct
control
• Personal credibility in IT/engineering and business product systems
• Credibility of good intention and results; governance depends on trust as
well as rules
• IT organization restructuring — add OT professionals and vice versa
Focus The CIO's Role On Information and
Processes Not Technology

IT OT

Information Processes

From Leading the IT delivery organization

To Leading the systematic, coordinated exploitation of the
business assets of processes, information and
relationships across all technologies in the enterprise
Owned and managed anywhere in the enterprise
IT/OT Convergence Changes Emphases in
the 12 Core Disciplines of IT Management
Leadership

Strategy

More
Enterprise
Architecture important

Security Asset
& Risk Management

Change Same
Organization
Sourcing
& People
Management importance,
& PPM changed
Service
Management emphasis
Performance Financial
Management Management

Governance

Relatively
less
important
Effective, Integrated Governance Is A CSF
Goal: Overcome Silos — Build a Connected Enterprise
Build sound foundations Adopt these best practices
• Ensure it's governance of
information and processes
primarily, not chiefly of technology.
Governance of business
information and processes • Accept architecture variations
among technologies, but create
integrated planning.
Integrated digital
technology standards and • Alternate chairmanship of key
connections steering groups among IT, OT and
other stakeholders to build trust
Effective, trusted and shared outcomes.
business-IT governance
Key Issues

1. How are the transformations of IT and

Operational Technology creating convergence
between them?
2. What benefits should CIOs seek by converging
IT and OT organizations?
3. How should CIOs refocus their roles in relation
to IT/OT intersection?
Action Plan for IT-OT Convergence
• Next Monday Morning
- evaluate the impact of IT OT convergence on the enterprise and
prioritize areas needing management attention.
- communicate about the forthcoming changes to build
understanding, acceptance of the need for change and readiness
for action.
• Next 90 Days
- evaluate and realign CIO roles and relationships to maximize the
value of converging IT and OT.
- scrutinize the extent of IT/OT integration in your enterprise today,
and the likely impact and potential for it by 2015.
• Next 12 Months
- reinforce the IT organization and the CIO role using strategy,
governance, credibility of the IT organization and the CIO for OT.
- build and operate converged IT/OT capabilities toward specific
business benefit targets
Related Gartner Research
 How the Intersection of IT and OT Is Changing the
CIO's Role, and What to Do About It
John Mahoney, Kristian Steenstrup (G00172115)
 IT Operations Management Enables IT/OT
Convergence
Will Cappelli (G00174172)
 IT and OT Interaction Gives Rise to New Governance
Kristian Steenstrup, Zarko Sumic, James Spiers, Bradley
Williams (G00172115)
 The Management Implications of IT/OT Convergence
John P. Roberts, Kristian Steenstrup (G00174016)
 Managing the Rapidly Changing Scope of Technology
John P. Roberts, John Mahoney (Gartner EXP report)
For more information go to: www.gartner.com.
 Integrate Operational Technology
into IT plans

Kristian Steenstrup
Research VP and Fellow

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2010 Gartner, Inc. and/or its affiliates. All rights reserved.