Modernizing Industrial Networks: The Business Case for IT/OT Collaboration 

New report from Harbor Research examines how leaders are accelerating IT/OT partnerships for significant operational and financial benefits 

“From 2018-2023, cybersecurity attacks involving critical infrastructure in manufacturing, utilities, transportation systems and similar mission critical domains almost doubled year over year driving an average compound annual growth rate of over 90% per year.”
– Harbor Research, The Business Case for IT/OT Collaboration in Modernizing Industrial Networks  

Cybersecurity urgency and AI readiness are proving to industrial companies that modernizing their OT (Operational Technology) networks are more critical than ever. A new report from Harbor Research, “The Business Case for IT/OT Collaboration in Modernizing Industrial Networks,” examines the impact that these trends have on operational networks and overall business success. The report goes on to describe how OT leaders are meeting the challenge by collaborating with their IT counterparts to apply IT capabilities like security and automation to the industrial network.  

Extending IT to the OT world: a framework for collaboration 

TCO reduction is just one of many competitive advantages gained by early movers in IT/OT collaboration. Harbor states, “Across a wide range of industrial domains, it is not uncommon to see 15% to 35% improvements in operational productivity, 10% to 30% reductions in cybersecurity risks, and 15% to 30% reductions in time to market for new products and innovations.” By extending IT management tools, such as Catalyst Center and SD-WAN Manager, into OT environments, companies can reduce manual intervention and simplify operations. And with a variety of different devices across the OT network, standardization simplifies network management and design, allowing for enhanced visibility and scalability. A tier-1 automotive parts manufacturer in the study reported that modernizing its networks helped to reduce equipment downtime by 25% to 30%. 

Strengthening cybersecurity as industrial networks face escalating attacks 

Attacks against industrial infrastructure continue to rise. Harbor writes, “Whether it’s supporting remote workers or connecting machines, controllers, cameras, and bar code readers, attack surfaces are rapidly growing.” With cybersecurity being a strong motivation for IT/OT collaboration, OT teams must reinforce functions that align and drive end-to-end accountability with IT processes to be able to unlock efficiencies for future challenges. Applications such as zero trust architectures, network segmentation, monitoring and threat detection, and incident response and compliance have proven essential for several partners today. Transportation agencies like Georgia’s Gwinnet County Department of Transportation are detecting and remediating problems more quickly since they gave operators secure remote access to roadside infrastructure.

Getting ready for AI  

Besides cybersecurity, the other major motivation for modernizing industrial networks is AI readiness. Leaders in industries from manufacturing to transportation are gaining a competitive edge by using AI for predictive maintenance for machines and vehicles, manufacturing anomaly detection, robotics and autonomous vehicles, supply chain optimization, and more. The Harbor report warns, “Organizations that fail to modernize their digital infrastructure and networks risk being unable to capitalize on these transformative technologies to enhance their competitive position.” Utilities like Ontario Clean Water Agency can collect sensor data from far-flung locations thanks to industrial network devices built to withstand extreme environmental conditions. 

Here, too, IT/OT teamwork accelerates success. OT brings its understanding of which devices and systems need to communicate and under what circumstances they can be taken offline, while IT brings the skills to deliver the network performance and reliability that AI applications demand. 

Bringing it all together 

We see continuous evolution between the relationship of IT and OT teams and networks. Cisco is building a strong foundation for industrial organizations to drive successful transformation and deliver tailored solutions towards a modernized future across all sectors. If you would like to join us in exploring the potential of IT/OT collaboration and how it can pave the way, check out the full Harbor Research Business Case.  

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