target audience: TECH BUYER  Publication date: Apr 2023 - Document type: Tech Buyer Presentation - Doc  Document number: # US50545623

The Impact of Governance Model Maturity for Manufacturing IT/OT Convergence: Segregated, Coordinated, and Integrated

By:  Reid Paquin Loading

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Abstract


This IDC Tech Buyer Presentation highlights some of the findings from IDC's 2022 Worldwide IT/OT Convergence Survey when splitting respondents by governance model approach. The full survey includes respondents across 4 industrial segments (manufacturing, oil and gas, utilities, and mining), 13 regions, and varying company sizes, with this presentation focusing on the findings for both process and discrete manufacturers.

Manufacturers can use this information to understand how the governance model their peers adopted impacted their overall IT/OT convergence initiatives:

  • Segregated: Each facility/plant/delivery system makes independent investment decisions about technology for its operational requirements through control and execution systems.
  • Coordinated: Each facility/plant/delivery system makes independent investment decisions about technology for control systems, but execution decisions occur across multiple facilities, plants, or delivery systems, through a shared services organization, a center of excellence, or a corporate function. Collaboration between IT and operations teams occurs on a project basis as required.
  • Integrated: Control system and execution system investment decisions are made through a shared services organization, a center of excellence, or a corporate function. Ongoing business as usual collaboration exists between IT and operational technology. Decision making about investment and priorities for operations is undertaken as a single unit.

The most mature governance model approaches are correlated to the highest improvements in operational performance across metrics such as unscheduled asset downtime, throughput, waste/scrap, energy efficiency, labor costs, and inventory turnover. As a result, integrated governance models are expected to see the largest increases in adoption over the next three years.

This presentation was shared with clients in March 2023.



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