Welcome!

Perl Authors: AppDynamics Blog, Liz McMillan, Mike Hicks, RealWire News Distribution, Bob Gourley

Related Topics: @ThingsExpo, @CloudExpo, @DXWorldExpo

@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
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
I think DevOps is now a rambunctious teenager - it's starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
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...
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will feature 10 companies from Poland to participate at the "Poland Digital Transformation Pavilion" on November 12-13, 2018.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
CloudEXPO | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...