IT/OT convergence: Key things to know before merging operations

IT/OT convergence—the integration of Information Technology (IT) and Operational Technology (OT)—is becoming essential for various reasons. For example, businesses seek real-time data, predictive maintenance, and seamless system interoperability. With the rise of IoT development, companies can now move away from siloed operations and adopt more connected strategies. To boost efficiency and drive innovation, many also rethink workflows and aligning IT and OT.

However, merging operations of two departments with opposing attitudes toward changes and legacy systems is challenging. This article explores why the merger is necessary for modern enterprises, what benefits of IT/OT convergence the businesses may get, the issues they may face during the transformation, and how software engineering companies like N-iX can help them enter a new connected reality.

What is IT/OT convergence?

IT/OT convergence means organizing IT and OT systems into a unified network that allows real-time data exchange between physical assets (manufacturing equipment, sensors, etc.) and digital platforms (ERP, CRM, etc.).

Traditionally, IT and OT teams have managed their own systems independently, forming different networks, with little to no direct data exchange between industrial equipment and IT infrastructure.

However, technological advancements, especially in the field of Internet of Things (IoT) solution development, have enabled their unification. Here's how an IoT-based platform facilitates the conversion of IT and OT systems in the industrial setting:

A wider adoption of various connectivity options, IoT, cloud solutions, and enhanced data analytics allowed businesses to process data generated by sensors and devices and use it for further analysis. Moreover, together with AI and ML solutions, the data used from both departments has enabled process automation, better quality control, and predictive analytics.

Before planning an IT/OT conversion strategy, it's important to understand the differences in approaches, tasks, and goals between these departments.

IT vs OT: Key differences

Information technology (IT) systems focus on data management, networking, and enterprise applications, handling everything from customer relationship management (CRM) to cloud computing. These systems are designed for flexibility and continuous improvement, adapting to new technologies, security protocols, and business needs. The task of IT departments is to make the information from these systems available to people who use corporate applications.

Operational technology (OT) systems control and monitor physical devices and industrial processes. Examples of such devices include sensors and relays used for measuring various parameters or detecting activity across the site (e.g., engine vibrations, soil acidity, air quality, movement, etc.), ensuring that operations run smoothly and efficiently. OT teams focus on stability, uptime, and long-term reliability, often avoiding frequent system changes that could disrupt production.

Why bridge IT and OT?

OT/IT convergence aims to establish communication between physical systems and digital networks and ensure data exchange between the networks and teams for better visibility and decision-making.

De-siloing processes and data between these departments eliminate inefficiencies caused by isolated data streams. Firstly, it allows businesses to gain real-time insights into operations. Secondly, it helps companies streamline predictive maintenance, remote monitoring, and automation, reducing downtime and operational costs.

The convergence of IT and OT is also one of the steps to successful digital transformation for any business with IT and OT departments. For industrial manufacturers, in particular, bridging the gap between IT and OT will help enter the Industry 4.0 and Industry 5.0 evolution of industrial processes. But it's not only manufacturing that would benefit from the integration of IT and OT.

Explore more: IoT in smart manufacturing: Insights for enterprises

Top 7 industries where IT/OT convergence is a game-changer

According to the IT OT Convergence Insights Report 2024 by IoT Analytics, the global market of IT/OT integration is expected to reach over $1.3T by 2030. The increasing business initiatives for digital transformation and wider adoption of IoT technologies across many industries explain this growth from $720B in 2023.

If we have to circle out top business domains that would benefit from IT and OT integration, we'd put it this way: the convergence will benefit any industry with IT and OT operations. While the list of such industries and businesses is long, it's necessary to emphasize a few domains that would reap the most benefits. Here are the ones that would experience the most impact.

• Manufacturing. IT/OT convergence enables real-time machinery monitoring, predictive maintenance, and streamlined production by connecting factory floor equipment with enterprise IT systems.
• Automotive. The businesses can achieve real-time vehicle diagnostics, smarter production line automation, and faster adaptation to changing design or compliance requirements.
• Energy. Integrating IT and OT operations allows for real-time grid monitoring, predictive maintenance of energy infrastructure, and optimized load balancing, improving reliability and efficiency.
• Oil and gas. The convergence of IT and OT in oil and gas enhances pipeline monitoring, improves predictive maintenance of drilling equipment, and ensures real-time data flow from remote field operations to central systems.
• Mining. It enables equipment tracking, improves safety through automated hazard detection, and streamlines coordination between underground operations and surface control centers.
• Agriculture. With IT and OT processes combined, farming businesses can boost yield and resource efficiency by enabling accurate monitoring of soil, weather, and crop conditions for data-based changes in irrigation, fertilization, and equipment use.
• Healthcare. IT/OT convergence leads to improved real-time patient monitoring, diagnostics, and care coordination by enabling seamless integration of medical devices with hospital IT systems.

The benefits of unifying IT and OT networks span other industries as well. Let's explore what advantages this merger can mean for businesses at large.

Benefits of IT/OT convergence

IT/OT convergence is an important step for businesses that want to run more efficiently and use connected technologies and device-generated data better. As implementation becomes possible, more companies turn to it for practical benefits.

Interdepartmental visibility

IT/OT convergence brings transparency to how both digital systems and physical operations perform. Decision-making becomes more informed and aligned when data from sensors, machines, and ERP systems are visible to both IT and OT teams.

A case in point, N-iX helped Fluke Corporation, an electronic test tools manufacturer, improve interdepartmental visibility by transforming Fluke's monitoring applications. As a part of our collaboration, we worked on Fluke's FM Alarms, a product that detects equipment's abnormal behavior and notifies the user via mobile devices. With features like asset location and control panel, the solution helped maintenance, operation, and data analytics teams to collaborate and decrease unplanned downtime.

Process automation

Once IT and OT systems are aligned, businesses can more easily integrate automation platforms like manufacturing execution systems (MES), ERP, and SCADA. For example, machine downtime alerts from the OT layer can automatically trigger maintenance tasks in the company's work management system. This results in more streamlined operations and fewer manual interventions.

Reduced costs

By merging IT and OT infrastructures, businesses reduce the cost of maintaining separate networks, duplicate tools, and overlapping responsibilities. Predictive maintenance powered by shared data insights also minimizes unplanned downtime and costly repairs. As a result, companies save money on both operations and long-term IT infrastructure investments. This is how Fluke Corporation benefitted from our services.

Our software developers helped establish reactive and preventative equipment maintenance based on real-time asset data. It allowed the company to improve asset monitoring and significantly decrease maintenance costs.

In addition, integrating IT and OT eliminates the need for manual checks. It helps businesses to execute more optimized staffing strategies.

Streamlined data sharing across networks and departments

Converged systems enable consistent and fast data exchange between physical devices and enterprise systems. For example, we helped Gogo, a leading in-flight broadband Internet provider, merge data from over 20 data sources, including onboard antennas and ERP. We also helped develop a data analytics solution with an ML component to develop models that assessed antenna health and predicted antenna failures. This model and steady data flow from various sources helped our client provide quality services to airlines, avoid fines for service delays, and optimize antenna maintenance.

Additionally, data can be analyzed holistically, making reporting and strategic decisions more accurate. However, the merger also makes data an important asset that calls for stricter governance and protection.

Reliable connection to outside organizations

With a unified network, businesses can more securely and reliably share data with third parties and outside organizations. The latter include suppliers, service providers, regulators, or even the entities of the same organization located elsewhere.

For example, energy companies using smart grids must exchange data in real time with energy distribution partners and consumers. Integrating IT/OT ensures those connections are secure and standardized, which is essential in highly regulated industries.

Read further: IoT connectivity: Tips for building a reliable network

Better performance across the teams

When IT and OT teams share access to their data, they can define and measure shared KPIs that reflect both operational efficiency and business outcomes. This enables a production engineer and an IT analyst to work from the same dataset when resolving bottlenecks.

For instance, supply chain KPIs can now incorporate machine-level data, giving a fuller view of production performance. As a result, the teams perform better together and adapt faster.

Improved flexibility

Real-time access to data across physical and digital systems allows organizations to adapt to market and operation shifts quickly. For example, production lines can automatically adjust schedules and output using live OT data if sales data shows increased demand for a specific product. As a result, the company can generate more revenue by adapting swiftly to changes.

Another case illustrating the benefits of merging IT and OT data would be a collaboration between N-iX and a client providing maritime technologies. We helped the client build the solution enabling cargo and container screening and cargo transfer notification. As a result, the client could monitor the cargo movement, adhere to agreed deadlines, and quickly manage any occurring changes.

Enablement of digital twins

IT/OT convergence allows companies to create a digital twin—a virtual model of a physical object or operations. The data related to OT processes gets transferred to the digital twins model, allowing the IT teams to monitor activities in real-time.

Such models help simulate and plan changes before implementing them on the factory floor instead of making full-fledged investments upfront. They also become a great way for businesses to optimize factory layouts, improve product design, and manage operations remotely.

Enhanced agility and scalability

A joint network and architecture make it easier to deploy new technologies, such as AI for predictive analytics or edge computing for local data processing. The best part? It can be done without having to redesign the entire system.

For instance, scaling from one factory to five becomes easier when all use the same integrated IT/OT infrastructure. It also reduces the complexity of onboarding new devices, software tools, or analytics platforms. That's one of the cases N-iX has worked on.

Because our international manufacturing client already had IT/OT convergence started, our engineers could help the enterprise scale their inventory management solution to over 400 warehouses worldwide. To do so, our experts helped redesign the architecture into a cloud-native, microservices-based system and implemented advanced computer vision capabilities. This modernization enabled real-time data streaming, high system responsiveness, and seamless deployment across various cloud environments, supporting efficient global operations and logistics automation.

Companies are now integrating both IT and OT domains to reach these benefits and improve processes in both departments. While doing so, they also should also avoid disrupting mission-critical OT operations or compromising data processing in the IT. Navigating this change is possible when you know what will need special attention along the way.

IT/OT conversion challenges and strategies to avoid them

Since IT and OT networks are complex, their integration into a shared one may also create complex issues. Here are the most common challenges your business may face during this merger and a few tips to overcome them.

Interoperability concerns

IT systems evolve quickly with frequent upgrades, cloud migrations, and service-based models. OT, in contrast, operates on slower upgrade cycles and often uses closed-loop systems. This mismatch can cause friction during integration on device and gateway layers.

Many legacy OT devices are designed for one-way communication and lack compatibility with modern IT protocols. They also lack the power or connectivity to support advanced IT functions. For example, an industrial sensor may send data but not receive updates or instructions remotely. These limitations slow down convergence and require additional infrastructure or asset replacements.

N-iX tips: We recommend creating an IT asset inventory to identify and address compatibility issues and understand where the site needs additional infrastructure. It will also help choose which approach—retrofitting or buying new equipment—will be more appropriate. The inventory will also highlight the technical or software gaps that should be bridged to continue the business transformation. Additionally, you can use edge computing to help bridge the gap by enabling local data processing on constrained OT devices.

Different perspectives and priorities

IT departments typically operate in dynamic environments, updating systems regularly to improve functionality and security. OT teams, by contrast, prioritize system stability and long-term reliability, especially for equipment designed to run for decades. This misalignment can lead to resistance when introducing change or integrating new technologies.

N-iX tips: Cross-training for IT and OT teams and a shared understanding of each team's goals will help align the teams with different views on processes. In addition, the IT teams should adopt an engineering mindset and practices for developing solutions that OT departments will use. It will ensure that adopted IT solutions won't put control or production processes and workers' safety at risk.

Scalability issues

Converging IT and OT often exposes hidden scalability issues. On the one hand, the devices may generate more data than the system can process. On the other hand, the infrastructure may have unmonitored sensors.

Without prior adjustments, IT infrastructures can become overwhelmed. The OT systems may lack visibility into unmonitored devices, complicating convergence planning and data analytics. A clearly documented convergence roadmap with digital twins can prevent bottlenecks.

N-iX tips: To avoid bottlenecks in creating or expanding a unified network, the teams should create a documented convergence strategy describing the current and desired state. The team may also consider extra on-premises servers or cloud services to manage the data flow if the current options aren't enough. If you already have digital twins, you can also use the model to identify where you will experience bottlenecks and overcome them without affecting production.

Cybersecurity challenges

Securing a mix of industrial sensors, connected machinery, and IT assets increases complexity, especially with varied device types. Moreover, merging different networks expands the attack surface within OT domains where devices are often older and lack built-in protections. Since traditional IT cybersecurity tools may not scale to handle OT endpoints or proprietary protocols, the company should apply security strategies that would cover both digital and physical assets simultaneously.

N-iX tips: Businesses integrating IT and OT should implement various strategies to mitigate cyber risks. Firstly, the business should prioritize their IoT security at the device, gateway, cloud, and application layers to strengthen vulnerable entry points. Secondly, the merged network should share a single operating model for both IT and OT to support control applications to physical and digital systems and environments. Thirdly, it's important to set up smart data packet filtering to detect potentially harmful data. Moreover, applying zero-trust authentication principles will also help protect communications between the devices and systems.

As a result, companies will establish cyber-physical system security through trusted network design, physical security automation, and third-party and supply chain integrity.

Skill gaps and resource scarcity

Successful IT/OT convergence demands expertise in cloud, cybersecurity, IoT, and industrial automation—skills that are often in short supply. Existing employees may lack experience in emerging technologies, and new hires with hybrid IT/OT knowledge are rare. Moreover, the process also requires knowledgeable solution and system architects to ensure compatibility and interoperability.

N-iX tips: Upskilling programs and cross-disciplinary teams can fill this gap. However, this approach may take longer and potentially slow down current operations. If you want to speed up the process, temporary outsourcing or establishing tech partnerships may help kick off projects faster. N-iX, for example, has access to top talents in 25 countries across the Americas, Europe, and APAC. We have expertise in cloud, IoT development, network and connectivity integration, cybersecurity, data governance and analytics, AI, ERP, and other tech domains necessary for launching a successful IT and OT convergence.

These were the specific challenges and approaches to deal with them. However, companies deciding to converge IT and OT departments should also follow the practices that would help streamline the process from planning the merger to maintaining the unified network.

Best practices for smooth IT/OT conversion

When merging IT and OT, the businesses have to ensure that the critical priorities for both departments—reliability and security of operations for OT, and flexibility and smooth data flow for IT—are observed. Applying the following practices will help you intertwine them within the shared network.

1. Identify common goals for teams that operate from different mindsets;
2. Create a cyber-physical security strategy that would reflect security and safety IT and OT systems;
3. Ensure your IT and IoT systems follow the fail-safe environment and redundancy approaches of OT systems;
4. Prioritise testing and continuous development to take systems offline if unsafe conditions are detected;
5. Inform IT teams about the OT's standards, such as ISO 55000 series (physical asset management), and include them where possible to streamline collaboration of both departments;
6. Facilitate IT and OT teams to adopt each other's practices (e.g., by shifting responsibilities);
7. Virtualize OT hardware environments, i.e., create software-based simulations or emulations of OT hardware (PLCs, SCADA systems, sensors) to enhance fast provisioning and disaster recovery;
8. Use cloud, edge, and on-device AI for data processing for cases where you need real-time data processing and scalability.

Since your business has unique IT and OT operations, it would benefit from partnering with a tech company that has vast tech expertise with various technologies and in different business verticals. N-iX is one of such companies. Here's what we can offer to launch a successful convergence project.

Top N-iX services to help you start IT/OT convergence

With over 2,200 software developers across Poland, Colombia, Ukraine, Romania, Bulgaria, India, and other countries, we help you augment your existing IT teams, provide managed software development services, or engage in flexible models based on specific projects. Here's what we offer in terms of IT and OT convergence.

• Custom software engineering. We build tailored software solutions that unify your IT and OT environments—from device-level control applications to enterprise-grade management systems.
• System integration services. We connect OT systems (SCADA, PLCs, HMIs) with IT systems (ERP, MES, CMMS) to enable seamless data exchange, eliminate silos, and increase operational transparency.
• IoT and embedded solution development. N-iX helps you connect physical assets to digital ecosystems by delivering firmware, IoT platforms, and proof-of-concept. We collaborate with leading tech providers like Wirepas, Nordic Semiconductor, and Raspberry Pi to support scalable industrial connectivity.
• Automated testing. With our IoT and embedded lab, we enable rapid prototyping, functional and performance testing, and validation across diverse hardware setups. It reduces time-to-market and ensures product reliability.
• UI/UX. We craft intuitive dashboards and HMI interfaces tailored to operators, engineers, and managers—helping you turn raw sensor data into actionable insights.
• Robotics consulting. We support smart manufacturing with expertise in robotics systems integration, automation strategy, and control software development.
• Edge computing. Our specialists build edge computing systems that process OT data locally to minimize latency, reduce cloud costs, and improve decision-making in time-sensitive environments.
• Intelligent platform and automation. We integrate and customize platforms like SAP, OpenText, and industrial automation tools to create intelligent, responsive, and data-driven operations.
• Data science. With over 200 data experts, we help clients apply AI/ML models to real-time sensor data for anomaly detection, predictive maintenance, energy efficiency, and yield optimization.
• AI consulting and implementation. Our AI experts will help you identify opportunities to enhance automation, predictive analytics, and decision-making across industrial systems.
• Big data analytics. N-iX develops solutions that help consolidate structured and unstructured data from OT devices, cloud, and enterprise systems to uncover patterns, optimize performance, and forecast outcomes.
• Cloud development services. With over 400 cloud experts and strong partnerships with AWS, Microsoft Azure, and Google Cloud, we help enterprises build scalable, secure cloud architectures for storing, analyzing, and visualizing OT data in real-time.

If you need a reliable tech partner to prepare IT and OT networks for convergence, as well as build and execute IT/OT convergence strategy, contact N-iX. Our expertise in different technologies and various business domains, including manufacturing, logistics, supply chain, retail, telecom, automotive, healthcare, energy, agritech, and others, will help you choose the right integration approach specific to your industry and business case.

References:

1. IT OT Convergence Insights Report 2024 | IoT Analytics