What is Operational Technology: Benefits for Your Business & Real-World Examples

As businesses aim to create a solid presence online, it is evident that they need a strong infrastructure. While Information Technology (IT) has long been recognized for its pivotal role in managing data and information systems, another branch of technology is equally vital: Operational Technology (OT). As industries become increasingly interconnected and automated, every business needs to understand the importance and impact of OT.

What is Operational Technology?

Operational Technology (OT) is a term that refers to the hardware and software systems used to detect or cause changes through direct monitoring and control of physical devices, processes, and events. As IT focuses on data-centric computing, OT is concerned with physical operations and processes, often in industrial settings.

According to PS Market Research, the operational technology market size is USD 175 billion in 2024 and it is expected to reach USD 256 billion in 2030, with a CAGR of 6.5%. Operational Technology is critical in manufacturing, energy, utilities, transportation, etc. OT includes Industrial Control Systems (ICS), Supervisory Control and Data Acquisition (SCADA) systems, Distributed Control Systems (DCS), and other control systems configurations often found in Industrial Internet of Things (IIoT) devices.

Key Components of Operational Technology

OT systems are designed to be robust and reliable, ensuring continuous operation even in harsh environments. They interact with physical equipment such as valves, pumps, motors, and sensors to control processes and collect data

Industrial Control Systems (ICS)

These are integrated systems used to monitor and control industrial processes. ICS includes systems like SCADA, DCS, and Programmable Logic Controllers (PLCs).

Supervisory Control and Data Acquisition (SCADA)

SCADA systems are used for remote monitoring and control. They collect data from sensors and instruments located at remote sites and transmit this data to a central system for monitoring and control.

Distributed Control Systems (DCS)

DCS is used in large, complex industrial processes where a high level of reliability and control is required. They distribute control functions throughout a system rather than centralizing them.

Programmable Logic Controllers (PLCs)

PLCs are digital computers used for the automation of industrial processes, such as control of machinery on factory assembly lines.

Field Devices

These include sensors, actuators, and other devices that interact directly with the physical environment. They collect data and execute commands to control industrial processes.

Benefits of Operational Technology for Businesses

Many businesses are realising the importance of OT and it is becoming more important to implement it to the fullest. Here are some of the key benefits:?

1. Increased Efficiency and Productivity

One of the primary benefits of OT is the increase in efficiency and productivity. By automating processes and providing real-time data, OT systems help businesses optimize their operations. Automation reduces the need for manual intervention, minimizes human errors, and ensures consistent quality. Real-time data allows for quick decision-making and adjustments, leading to improved performance.

2. Enhanced Safety

Operational Technology plays a crucial role in ensuring the safety of industrial operations. OT systems can monitor hazardous conditions, detect anomalies, and trigger automatic shutdowns or alerts to prevent accidents. For example, in the chemical industry, OT systems can detect leaks or spills and initiate containment measures, protecting workers and the environment.

3. Cost Reduction

By optimizing processes and reducing waste, OT can lead to significant cost savings. Automated systems require less manual labour, reducing labour costs. Moreover, predictive maintenance enabled by OT can prevent equipment failures and extend the lifespan of machinery, reducing maintenance and replacement costs.

4. Improved Quality Control

OT systems provide precise control over manufacturing processes, ensuring consistent product quality. Real-time monitoring and data analytics allow for immediate identification and correction of deviations from quality standards. This leads to higher customer satisfaction and reduced returns or rework.

5. Better Decision Making

The data collected by OT systems provide valuable insights into industrial operations. This data can be analyzed to identify trends, optimize processes, and make informed decisions. For instance, energy consumption data can be used to develop strategies for reducing energy costs and improving sustainability.

6. Scalability

Operational Technology systems are highly scalable, making them suitable for businesses of all sizes. Whether a company is a small manufacturer or a large industrial enterprise, OT solutions can be tailored to meet specific needs and can grow with the business.

Real-World Examples of Operational Technology

As OT has many benefits, it is used widely in every industry. Its reach shortly will increase and businesses should adopt it now. Here are some of the real-world examples and Bizmetric is proficient in implementing OT in these sectors:

Manufacturing Industry

In the manufacturing sector, OT is used extensively to automate production lines, monitor equipment, and ensure quality control. For example, an automotive manufacturing plant might use a combination of SCADA systems, PLCs, and HMIs to manage the assembly line. Sensors on the production floor collect data on machine performance, and SCADA systems monitor the entire process, allowing for real-time adjustments and ensuring that production targets are met.

Energy and Utilities

In the energy sector, OT is crucial for managing power plants, electrical grids, and pipelines. SCADA systems are used to monitor and control the distribution of electricity, gas, and water. For instance, a power plant might use OT to monitor the performance of turbines, manage load distribution, and detect faults in the grid. This ensures a stable supply of energy and prevents outages.

Oil and Gas Industry

The oil and gas industry relies heavily on OT for exploration, production, and distribution. DCS and SCADA systems are used to monitor drilling operations, control the flow of oil and gas, and manage pipeline integrity. For example, in offshore drilling, OT systems monitor the performance of drilling rigs, detect equipment malfunctions, and ensure the safety of operations in harsh environments.

Get Started with Operational Technology

Ready to revolutionize your business operations with the power of Operational Technology? Bizmetric specializes in implementing OT solutions tailored to meet your unique business needs. Our team of experts have worked on manufacturing and oil & gas clients with OT and can deliver the best results for every industry. Want us to work on your project? Contact Bizmetric today to schedule a consultation.