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After nearly a year of delving into the intricacies of IT/OT convergence, it's time to shift gears and step into the real world where theory meets practice. Introducing our new series, "Idea to Shop Floor: How companies are figuring out IT/OT Convergence," where we'll be showcasing real-life case studies from companies that are at the forefront of digital transformation. These stories will highlight the challenges, triumphs, and lessons learned from businesses that are successfully (or not) integrating IT and OT, providing invaluable insights and inspiration for your own journey.
In this podcast David talks to Sophie Van Nevel. She is the Global IT Lead for Strategy and Governance and also Data and Analytics at Bekaert.
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Established in 1880, Bekaert is a global leader in steel wire transformation and coating technologies. You can find their steel products in various applications: Champagne cork wire, fishhook wire, steel cord inside tires, concrete reinforcement, very specialized applications in renewable energy, fencing and many others.
At Bekaert, you will find various types of industrial processes, one of them is cold drawn steel wire. Cold-drawing changes the steel's shape and size by pulling the material through a carbide die or turks head. Often, steel will go through cold-rolling first and then cold-drawing to enhance its properties for better performance.
Obviously, minimizing energy consumption while increasing the reliability/uptime of the production lines is extremely important for Bekaert. This is where data and Sophie’s team comes into play!
“The basic process is drawing the wire into a smaller diameter, then adding coatings or bundling wires together to create new material properties. This intricate process requires precise measurements and adjustments, making sensor data critical. Sensor data quality is essential to ensure we meet the desired parameters throughout the production process,” Sophie explains.
Building Digital Products
Sophie's team is responsible for creating digital products that leverage data analytics to optimize production processes. This includes using dashboards to monitor energy consumption and employing AI models to refine product quality. “We work closely with our business teams to drive intelligent processes, aiming to optimize our production with the help of technology and data,” Sophie explains. One of their innovative goals is to provide sensor data as a service to their customers, enhancing transparency and collaboration.
The Role of Data Governance
Data governance, often seen as a theoretical concept, is vital for managing both transactional and sensor data. Sophie emphasizes the importance of integrating data governance into everyday practices. “We’ve set up roles like data stewards and custodians, and provide training to ensure everyone understands their role in the data delivery value chain,” she says. This approach ensures high data quality and consistency, which are crucial for generating reliable insights and driving business value.
Case Study: Energy Management
A prime example of Bekaert’s data-driven approach is their energy management program. The company installed energy meters in their plants to monitor and reduce energy consumption, aligning with their sustainability goals. “We started by reporting the data from the meters, but soon realized the need for better accuracy,” Sophie recalls. By analyzing discrepancies between machines and understanding the underlying causes, such as temperature changes or data drift, Bekaert was able to develop predictive models to optimize energy use.
Cross-Team Collaboration
At Bekaert, the convergence of IT and OT is achieved through cross-team collaboration. “We bring together IT, business, and engineering teams to solve specific cases, focusing on driving end-to-end value,” Sophie explains. This collaborative approach leverages diverse expertise to tackle complex challenges, such as optimizing energy consumption, and ensures that solutions are practical and effective.
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From Services to Manufacturing
Transitioning from a service-oriented organization to a manufacturing environment presented unique challenges for Sophie. “In banking, it’s more about services, whereas at Bekaert, the impact of data actions is very concrete and immediate,” she notes. This tangible impact underscores the importance of effective change management, particularly when dealing with existing assets and technology that may not be digital-native. “We focus on data literacy and involve people in the journey to ensure they see the value of their contributions,” Sophie adds.
Scaling and Sustainability
Scaling digital initiatives from pilot projects to full-scale implementations is a critical aspect of Bekaert’s strategy. Sophie outlines their governance approach, which assesses the value and applicability of pilots across different plants. “Not every plant or product is the same, so we define criteria to determine whether we can scale a digital product,” she explains. This method ensures resources are allocated to initiatives with the highest potential impact while discontinuing those that do not deliver expected results.
The Future of AI and Data at Bekaert
Looking ahead, Sophie is optimistic about the role of AI and data in driving business value. “We hope to continue leveraging AI and data to create significant business value. Data quality and governance will remain crucial as we develop more advanced AI models,” she asserts. The foundation of robust data practices will enable Bekaert to harness the full potential of digital technologies, ensuring sustainable growth and innovation. Bekaert's journey exemplifies how IT/OT convergence can transform traditional manufacturing processes through the strategic use of data and collaboration.
As we continue this series, we’ll explore more real-world stories to inspire and guide your digital transformation efforts. Stay tuned for more insights from industry leaders who are turning theory into practice.
Find Sophie on LinkedIn.
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Welcome back to the IT/OT Insider Podcast, Today, we have a special guest, Dr. Amir Cahn, CEO of the Smart Water Networks Forum (SWAN). Dr. Cahn brings a wealth of knowledge and experience in leveraging data-driven technologies to transform water, wastewater and stormwater networks worldwide.
The SWAN (Smart Water Networks) Forum is a global hub for industry experts, innovators, and thought leaders dedicated to the digital transformation of the water sector. SWAN's mission is to accelerate the adoption of data-driven solutions to improve the efficiency, sustainability, and resilience of water networks worldwide. They unites a diverse range of stakeholders, including water utilities, engineering firms, technology companies, startups, investors, and academics, fostering collaboration and innovation across the water sector.
Understanding Data-as-a-Service (DaaS)
I was particularly interested in learning more about Data-as-a-Service (DaaS), a transformative model for water utilities. Unlike traditional methods where utilities manage their hardware and their data, DaaS shifts the responsibility to a service provider, who handles data generation, transmission, and analytics. This model allows utilities to focus on outcomes rather than infrastructure management.
"Data-as-a-Service is about shifting the risk and responsibility from the utility to the service provider. This way, utilities can decide whether they want just the data, a summary report, or predictive analytics," explains Dr. Cahn.
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The Services Staircase
We also talked about the Services Staircase, a framework that outlines the progressive stages utilities can follow to enhance their data management capabilities. There are three different types of service levels: base (product), intermediate (service), and advanced (capability). This structured approach helps utilities gradually improve their data capabilities, ensuring a sustainable and scalable transformation. By following the Services Staircase, utilities can systematically build their expertise and infrastructure, leading to smarter, more efficient water management practices.
Real-World Examples of DaaS Implementations
Gonzales, Louisiana: Enhancing Service Quality with Smart Metering
In Gonzales, Louisiana, a small utility faced significant budget constraints that limited its ability to upgrade its infrastructure. By adopting a smart metering DaaS model, the utility was able to implement advanced metering infrastructure without the need for substantial upfront capital. The DaaS provider handled the data generation, transmission, and analytics, delivering actionable insights directly to the utility. This approach allowed the utility to improve billing accuracy and efficiency, while simultaneously enhancing service quality. As a result, Gonzales saw a reduction in water losses, improved customer satisfaction, and better resource management, demonstrating the tangible benefits of DaaS in a cost-effective manner.
Jerusalem: Reducing Industrial Pollution through Data-Driven Monitoring
In Jerusalem, the city's water utility faced challenges in monitoring and managing industrial pollution, which posed significant environmental and public health risks. By partnering with a DaaS provider, the utility was able to implement a comprehensive monitoring system that continuously collected and analyzed data from various industrial sites. This system provided real-time alerts and predictive analytics, enabling the utility to identify pollution sources and respond promptly to potential issues. The DaaS model not only improved the utility's ability to manage industrial pollution but also facilitated compliance with environmental regulations. This proactive approach led to a significant reduction in pollution incidents, showcasing how DaaS can drive environmental improvements and operational efficiency in urban water management.
The Future of Water Management
As we look to the future, Dr. Cahn envisions increased collaboration between utilities, technology providers, and other sectors. This collaborative approach is essential for addressing pressing challenges like climate change and resource management. Dr. Cahn encourages utilities to embrace DaaS and other innovative models to enhance their operations and sustainability.
"We're at a pivot point where water management needs innovative solutions more than ever. By working together, we can advance the sector and address global challenges."
Join the 350+ members of the SWAN Network
To learn more about DaaS and other innovative water management solutions, visit the SWAN Forum's website. Now is a great time to get involved, as SWAN is offering a 10% discount on membership until July 30th. Join SWAN's global community to share insights, collaborate on projects, and drive the future of water management.
Resources
Find Dr. Amir Cahn on LinkedIn: https://www.linkedin.com/in/amir-cahn/ Download the free DaaS Playbook: https://swan-forum.com/publications/swan-daas-playbook/Become a SWAN member: https://swan-forum.com/join/
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In this episode of the IT/OT Insider podcast, David sat down with Toni Manzano, a veteran in the pharmaceutical industry and co-founder and Chief Scientific Officer at Aizon. We delve into how IT/OT convergence concepts can be applied to the pharmaceutical industry, an area where precision, regulation, and innovation intersect in complex ways.
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The life sciences industry, encompassing sectors like pharmaceuticals, biotechnology, and medical devices, has an impact on all of us. They are pivotal in advancing global health by innovating and producing therapies, diagnostics, and treatments that improve and save lives. This industry represents a significant portion of the global economy, with the pharmaceutical sector alone generating approximately $1.6 trillion in global revenue in 2023.
Let’s delve into this super interesting sector and discover how digital solutions are transforming the way medicines are developed and produced!
From Astrophysics to Pharma
Toni began by sharing his intriguing transition from teaching astrophysics to spearheading software innovation in the highly regulated pharmaceutical industry. He reflected on his contributions to the development of Laboratory Information Management Systems (LIMS) and Manufacturing Execution Systems (MES). "Twenty years ago, LIMS and MES were something ‘wow’, and today it's still ‘wow’," Toni noted, emphasizing the continuous relevance of these systems, but also the slow adaptation.
AI in Pharma: Beyond the Buzz
We discussed the current hype surrounding artificial intelligence (AI) in pharma. Toni describes AI as a "cocktail" with power computing, algorithms, maths, and crucially for pharma, quality data as ingredients. "The secret sauce of this cocktail in pharma is the quality data. Without quality data, you cannot bring AI to fruition," Toni explained.
Toni shared a story about handling human plasma. Unlike other raw materials where quality non-compliance could simply lead to a batch rejection, human plasma represents a unique and invaluable resource that cannot be discarded. Here, Toni illustrated how AI can play a critical role. He described a scenario where, despite the high quality of operations, fluctuations in the quality of plasma can affect the final product. This complexity is where AI excels—by integrating vast amounts of operational and quality data to optimize processes that traditional methods cannot. This example not only underscores the complexity inherent in pharma manufacturing but also highlights the transformative potential of AI in managing such complexities, ensuring that every batch of product meets quality standards without wasting precious resources.
Challenges and Conservatism
Addressing the conservatism in the pharmaceutical industry, Toni pointed out the paradox of massive profitability discouraging rapid innovation. "If the industry is earning a lot of money with the status quo, there's less perceived need to evolve," he said. This highlights a significant barrier to adopting new technologies in an environment where traditional methods continue to yield high returns.
Regulatory Insights and the Path Forward
We also talked about the critical role of regulations in pharma, which ensure the safety, quality, and efficacy of medical products. Toni illuminated the evolving nature of regulatory frameworks which are increasingly accommodating modern computational methods, including AI. "Regulatory bodies are promoting innovation and the modernization of the pharmaceutical industry," Toni stated, suggesting a gradual but inevitable shift towards more advanced, data-driven manufacturing processes.
Outlook
As we wrapped up our conversation, Toni expressed optimism about the future of IT/OT convergence in pharma, driven by societal demands for rapid innovation and a generational shift in executive leadership towards tech-savviness. "Young executives understand and live with digital technology daily. It's not something strange; it's necessary," he remarked.
Find Toni on LinkedIn: https://www.linkedin.com/in/tonimanzano/Interested in finding out more about Aizon? Visit https://www.aizon.ai/
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Welcome to a special episode of the IT/OT Insider Podcast! Today is the first time we, David and Willem, are interviewing each other instead of hosting a guest. As co-authors of this blog and both working in the field of industrial digitalization, we thought it would be fun to share our own stories. In this episode, we'll delve into our backgrounds, our journeys in IT and OT, and our joint presentation at the Enterprise Technology Leadership Summit Europe last week.
This conference was organized by IT Revolution, who published many of our favorite books including The Phoenix Project, Team Topologies, Sooner Safer Happier, DevOps Handbook and others. We were introduced by Gene Kim who shared that he too had witnessed the IT-OT divide in critical infrastructure. Our presentation is available on their website, you need to create a free trial account to get access or you can listen to this podcast ;)
The Paradox of Digital Solutions
We discussed the paradox that despite the promising potential of digital solutions, their implementation often fails when subjected to the realities of diverse and incompatible systems across manufacturing sites. "Billions have been poured into digitization, yet the average shop floor whispers tales of the 1980s," we noted during our talk. This mismatch between investment and outcome highlights the difficulty in scaling digital projects beyond pilot 'lighthouse' plants.
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The Socio-Technical Ecosystem
Our conversation emphasized that IT/OT integration is not merely a technical challenge but a socio-technical endeavor that involves people, processes, and entrenched cultural norms. We pointed out that the disparity between IT and OT spans not only systems but also cultures, with IT's rapid innovation cycle clashing with OT's priority for reliability and gradual evolution.
New!! Because we already have 30+ articles, we have now created 3 summary pages containing our most influential articles on Organization, Change, and Technology. Make sure to check them out!
Challenges of Top-Down Directives
We critiqued the common practice of dictating IT/OT convergence from the upper echelons of management, a top-down approach that often underestimates the intricate dynamics of integration. "Converging two organizations is not a management decision," we explained, emphasizing that these initiatives should consider the socio-technical aspects where both IT and OT bring unique strengths and cultural perspectives.
Anti-Patterns in Convergence
Highlighting the pitfalls in current convergence practices, we talked about how mismanaged efforts can lead to increased divergence instead of integration. "When done wrong, efforts to converge will quickly lead to quite the opposite: divergence," we observed. We discussed how organizational comfort zones and resistance to change can exacerbate friction and mistrust between IT and OT departments.
Our Vision for Collaboration
Looking forward, we advocate for fostering a culture of collaboration where IT and OT not only coexist but actively cooperate, leveraging each other's strengths. We propose building a bridge over the existing differences to create systems and processes that are IT-enhanced yet respect the operational imperatives of OT.
Moving Toward Effective Integration
Our discussion concludes with a call to action for organizations to rethink their approach to IT/OT integration. We emphasize the need for adaptive strategies that recognize the complexities of modern industrial environments and promote a balanced integration of technology and operational practice. By focusing on collaborative approaches and understanding each domain's unique contributions, companies can more effectively navigate the challenges of digital transformation in manufacturing.
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In this latest episode of the IT/OT Insider podcast, David welcomed Jan Meskens, a seasoned data consultant with a rich background in data management and academia. The discussion provided deep insights into the evolving landscape of industrial data management, emphasizing the critical need for bridging the gap between Information Technology (IT) and Operational Technology (OT) to leverage the full potential of data in Industry 4.0.
User-Centric Data Management
“In the world of data, usability is often an afterthought”
Jan, who started his career in user experience design before transitioning into data consultancy, shared his unique perspective on making data systems as user-friendly as possible. “In the world of data, usability is often an afterthought,” Meskens explained. He highlighted the common industry challenge where crucial data is frequently trapped within complex systems like massive Excel spreadsheets, understandable only by their creators.
The Two-Pronged Approach to Data Projects: Bottom-up + Top-down
The conversation shifted towards how organizations initiate and drive data projects. Meskens outlined a dual approach seen in most successful enterprises: a bottom-up initiative driven by specific teams who see value in data and a visionary top-down strategy led by leaders who understand the broader benefits of data integration. “Both directions are crucial for cultivating a data-driven culture within any organization,” Meskens noted.
Proof of Concept: Learning or a Pitfall?
“The real success stories are those where PoCs serve as a stepping stone to full-scale implementation and integration.”
A significant focus was on the role of proofs of concept (PoCs) in data management projects. Meskens emphasized that PoCs should be learning instruments rather than final solutions. “The real success stories are those where PoCs serve as a stepping stone to full-scale implementation and integration,” he stated. This approach mitigates the risk of what he humorously refers to as "PoC purgatory," where projects perpetually cycle through the proof-of-concept phase without reaching full deployment.
Integrating IT and OT Perspectives
David and Jan also delved into the cultural and procedural nuances that differentiate IT and OT. Meskens pointed out that while IT projects can often pivot and adapt rapidly, operational technology demands a more methodical and safety-oriented approach due to the physical nature of the machinery and processes involved. This difference often leads to a clash of expectations and methodologies when managing data projects across IT and OT boundaries.
Facilitating Change through Sketches
Highlighting an innovative communication method, Meskens shared how sketching complex ideas has helped bridge the communication gap between various stakeholders in data projects. “Sketches open a dialogue—they are simple yet powerful tools for visualization and feedback,” he remarked, noting how this method helps stakeholders engage more constructively in project discussions.
Book Recommendations
Meskens recommended two influential books for those interested in deepening their understanding of data management and project dynamics: "The Phoenix Project" and "Data Management at Scale." These readings, he believes, provide foundational knowledge and advanced insights into effectively managing and scaling data projects.
Insights for the Future
The podcast wrapped up with a reflective discussion on the future of IT/OT convergence, with both David and Jan advocating for more integrated and cooperative approaches to managing industrial digital transformation.
This episode of the IT/OT Insider not only shed light on the technical and cultural facets of data management but also underscored the importance of strategic and human-centric approaches to digital transformation in the manufacturing sector. As industries worldwide continue to evolve, the principles discussed by David and Jan will undoubtedly influence future innovations and integrations across the IT-OT spectrum.
Book giveaway!
We are giving away a copy of The Phoenix Project ! Details can be found at the end of the episode. Send your answers to [email protected] or DM me on LinkedIn.
About our Guest
Find Jan on LinkedIn: https://www.linkedin.com/in/janmeskens/ or via his website https://sievax.be. Make sure to subscribe to his blog on Medium: https://medium.com/@meskensjan
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In the heart of the digital revolution, companies across the globe are recognizing the need to adapt and transform. The industrial sector is no exception. David had the privilege of speaking with Mike Hughes, Zone President at Schneider Electric for the Nordics and Baltic region, who has been at the forefront of this transformation. With years of experience and a career that spans various regions, including the UK and Ireland, Mike shared valuable insights on the evolving landscape of digitalization in manufacturing.
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“Digitalization isn't a new concept; it's been on the corporate agenda for years. However, the urgency to adopt digital strategies has significantly increased.”
The Why and How of Digitalization
David: “Why should companies talk about digital transformation today?”
Mike Hughes: “Digitalization is not a new concept; it's been part of the dialogue for many years. However, what's changed is the urgency and the necessity for it. The advancements in sensor technology over the past decade, coupled with exponential growth in computing power, particularly through AI and companies like NVIDIA, have propelled us into a new era. It's not just about being able to gather data anymore; it's about analyzing and extracting valuable insights from that data to drive significant productivity gains.”
A compelling aspect of our conversation centered around the realization that digitalization transcends IT. This transition is not just about enhancing IT infrastructure but transforming industrial processes to unlock new value.
Key Drivers of Change
From the introduction of SCADA systems to the integration of industrial software, the landscape has changed. This evolution is fueled by the need for data-driven insights to optimize processes and reduce inefficiencies.
Mike: “Over the past five years, the shift has been remarkable. Historically, IT and OT have operated in silos, but we're seeing those barriers come down. The realization that the largest potential for value lies not within office productivity tools but within industrial processes has been pivotal. When you combine digital sensor technology with AI capabilities, you create a powerful tool for unlocking efficiency on the shop floor. This convergence of IT and OT is vital for leveraging data across the entire manufacturing ecosystem.”
Sustainability + Digitalization
Another key theme that emerged was the role of digitalization in promoting sustainability.
Mike: “Sustainability and digitalization go hand in hand. As regulations around sustainability tighten, companies are compelled to not only track but actively manage their environmental impact. Digital tools allow for better energy management, supply chain transparency, and overall resource efficiency. It's a win-win scenario where companies can achieve sustainability targets while enhancing operational efficiency. [..] One of the most important lessons is that digital transformation goes beyond technology. It's fundamentally about rethinking processes and systems to unlock new value. Another critical aspect is the blurring lines between IT and OT, enabling seamless data flow and analytics. Lastly, sustainability can serve as a powerful catalyst for digital adoption, driving companies towards practices that are not only efficient but also environmentally friendly.”
Looking forward: what does the future hold?
Mike: “The future is incredibly promising. As we refine our approaches to integrating IT and OT and as technologies continue to advance, I believe we'll see even more innovative applications of digital tools in manufacturing. Sustainability will remain a key focus, driving further innovation in how we manage resources and reduce environmental impact. The journey of digitalization is ongoing, and it will continue to shape the manufacturing sector in profound ways.”
Lessons Learned
Reflecting on our conversation, several lessons stand out:
* Digitalization is a strategic imperative, not just a technological upgrade. It's about rethinking processes and systems to unlock new value.
* The integration of IT and OT is a game-changer, enabling seamless data flow and analytics across the manufacturing value chain.
* Sustainability can be a powerful catalyst for digital transformation, driving companies to adopt practices that are not only efficient but also environmentally friendly.
A big thank you to Mike, the Schneider Electric Marketing & Communication team and AVEVA Select Scandinavia !
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Welcome to today’s episode, where we dive deep into the world of IT/OT convergence with Shiv Trisal, the global manufacturing, transportation, and energy market leader at Databricks. Join us as we explore the transformative power of data across industries and discuss the future of industrial digital transformation.
Timestamps:
[00:00] Meet Shiv Trisal
[00:33] Databricks Explained
[01:36] IT vs. OT Data
[02:31] Shiv's Journey
[05:26] Industry Comparisons
[05:34] Greenfield vs. Brownfield
[10:16] Jargon Challenges
[10:20] Bridging Gaps
[17:41] Data Convergence
[22:56] Cloud Transformation
[29:32] Episode Wrap-Up
Key Takeaways:
Databricks is at the forefront of empowering organizations with data intelligence, providing tools for companies to harness specific insights from their data, leveraging both IT and operational technology (OT) information.
The convergence of IT and OT data is crucial for the future of industrial digital transformation, requiring a unified approach to data analysis and utilization.
Shiv Trisal highlights the significant shift in data utilization and perception during his transition from the aviation industry to Databricks, emphasizing the value of AI and machine learning in discovering patterns and insights.
The conversation underscores the challenges and opportunities in IT/OT convergence, emphasizing the need for domain expertise, mutual understanding, and the alignment of perspectives between IT and OT domains.
The future of IT/OT integration is collaborative, focusing on creating a shared data foundation and maintaining data quality to drive actionable insights and outcomes.
Resources and Links:
Databricks Official Website: https://www.databricks.com/
AVEVA Partnership Announcement: https://www.aveva.com/en/about/news/press-releases/2024/aveva-and-databricks-forge-strategic-collaboration-to-accelerate-industrial-ai-outcomes-and-enable-a-connected-industrial-ecosystem/
Shiv Trisal’s LinkedIn Profile: https://www.linkedin.com/in/shiv-trisal/
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