The Convergence of IT and OT in Commodities Industries: A Journey Towards Digital Transformation and Operational Excellence

In my experience with commodities industries, I've seen that integrating Information Technology (IT) and Operational Technology (OT) is crucial for these companies' success and competitiveness. This convergence, which I consider a one-way street, becomes even more important in a context of accelerated digital transformation, driven by technologies like the Internet of Things (IoT) and Artificial Intelligence (AI).

Gartner, in its report "Five Common IT/OT Decision Points for Edge Initiatives", reinforces this view, highlighting the challenges and opportunities of this integration in the context of edge computing. Gartner points out that while OT modernization is faster and simpler due to the local scope, the greatest successes and business impacts come from top-down, IT-led approaches with the essential support of the business, the COO and/or the Business Unit Directors, who accommodate, leverage and amplify OT modernization processes.

However, IT and OT integration goes beyond technology, encompassing cultural and organizational aspects. IT and OT have different cultures, priorities, and languages, which requires a mindset shift in both areas for effective collaboration. IT needs to understand the needs and challenges of OT, and OT needs to recognize the value that IT can add to the operation.

I believe that this integration is part of a path that will culminate in the complete merger of IT and OT teams, creating a new open and collaborative culture that assimilates the best of each team. This new culture should be based on agile teams at the edges, with autonomy to make quick decisions and respond to the specific needs of their production units, and a cohesive corporate structure that ensures alignment with the company's strategic objectives. This structure should be able to empower local teams, like "small agile boats", while keeping everyone rowing in the same direction.

For this cultural transformation to occur, it is essential to have the sponsorship of Business Unit (BU) directors and/or the COO (Chief Operating Officer). They need to sponsor the creation of single teams, where IT and OT capabilities are combined to focus on the organization's strategic results, and no longer on technology as an end in itself. The business reasoning behind this movement is the pursuit of operational excellence, which translates into greater efficiency, cost reduction, increased productivity, and improved safety. Gartner emphasizes the importance of "culture hacking", that is, a small change in culture that generates great results, both in IT and engineering, to facilitate this integration.

This new culture should be based on collaboration, knowledge sharing, and the search for joint solutions to the company's challenges. Technology should be seen as a tool to achieve business objectives, not an end in itself. Gartner highlights that the combination of problem-solving and continuous improvement, characteristic of both cultures, creates value for the organization.

I see this cultural transformation as a one-way street for capital-intensive industries. The convergence of IT and OT, combined with the creation of a new collaborative culture and driven by the increasing use of Artificial Intelligence, will allow these companies to respond to the challenges imposed by the structural changes we see in the world, such as the growing demands to reduce the carbon footprint and greater diversity in industrial teams, as well as the great change in the age pyramid that will impact the availability of labor. I believe that AI, combined with these cultural and technological changes, will allow industries to respond more effectively to these challenges, building a more efficient, sustainable, and inclusive future.