Industrial Control Systems Modernization Is on the Rise as Utilities Sector Adopts Digitalization, Explains Info-Tech Research Group

The firm's research shows that conducting a cost-benefit analysis (CBA) can help the utilities industry support the justification of industrial control systems modernization.

TORONTO, June 13, 2023 /PRNewswire/ - In the era of automation and industrial digitalization, the modernization of industrial control systems (ICS) is on the rise in the utilities industry. However, there is a lack of comprehensive understanding among information technology (IT) and operational technology (OT) leaders regarding the driving factors behind ICS modernization, leading to challenges in planning and executing successful projects. To address these issues and support the utilities industry in its digital transformation journey, Info-Tech Research Group has released a new research blueprint titled Industrial Control System Modernization: Unlock the Value of Automation in Utilities.

"For over four decades at the center of the operations within utilities, ICS has been hiding behind the curtain. Without drawing much attention, and slowly but surely moving the automation of utility operations forward," says Jing Wu, principal research director at Info-Tech Research Group. "With the advent of Industry 4.0, IIoT, digital twins, and other industrial digital trends, ICS has now gained center stage for every industry modernization roadmap. As a result, IT, OT, and business leaders must now face the insufficiencies and obsolete practices that previously had gone unnoticed and used to be less problematic. The good news is that technology advancements and the need for business digitalization present the greatest opportunities for ICS to transform and to stay relevant."

Info-Tech's research highlights the significance of modernizing ICS as a foundational step toward digital transformation. The research also identifies the obstacles organizations must overcome to successfully undertake this modernization journey. For example, ICS modernization projects often prove costly and challenging in terms of justifying the investment, as executives tend to underestimate the level of IT involvement required. The crucial aspect of implementing effective change management is also often overlooked, leading to doubts among IT, OT, and business teams regarding the project.

The firm's resource advises that a modernized ICS can enhance service reliability through continuous and real-time operation. To ensure the effective implementation of an ICS modernization plan, Info-Tech suggests a three-step approach:

1. Evaluate: Conduct a cost-benefit analysis to support adopting modernization technologies.
2. Refine: Optimize the implementation plan based on previous lessons learned.
3. Plan: Leverage a readiness checklist for IT/OT/business leaders to guide necessary people, processes, and technology changes.

"Info-Tech's industry research on ICS modernization explores a cost-benefit analysis of ICS modernization programs. Combining the lessons learned from previous projects and perspectives from industry practitioners and technology vendors, this report helps IT/OT leaders optimize and de-risk any future ICS modernization projects," explains Wu. 

While technology presents many possibilities for ICS modernization, the vast array of options can be overwhelming. Hence, the firm advises IT leaders in the utilities sector to comprehensively understand the primary factors that are driving the need for ICS modernization, which can include:

The Pressures of Operational Excellence: Utilities are faced with a shrinking pool of talent due to an aging experienced workforce and competitive markets that cannot keep pace with the demand.

Growing Risk and Compliance Challenges: The utilities industry is facing stricter regulation and compliance requirements, creating a higher demand for data logging and systems monitoring for regulatory reporting. There are also concerns with security and safety, and inadequate governance poses regulatory and cybersecurity risks.

Industry Revolution Propels Advancement: IT capabilities driving OT transformation, the demand for automation to support digital strategies, and the challenge of limited situational awareness in larger geographic areas drive ICS modernization.

Threats to Resilience and Reliability: Aging infrastructure threatens reliability through equipment failures and service disruptions, compounded by obsolete technology and cybersecurity vulnerabilities. Modernization and upgrades are crucial to address these challenges and enhance reliability and security.

The research blueprint explains that an investment in technology should aim to enhance organizational capabilities, and this principle applies to ICS modernization as well. It is crucial for IT/OT leaders to establish clear connections between intricate technical terminology and easily understandable business terms. By illustrating gaps in business capabilities, productive discussions can be facilitated between technical practitioners and business stakeholders to build an effective ICS modernization plan.

To gain more insights on the research findings and ICS modernization, download the complete Industrial Control System Modernization: Unlock the Value of Automation in Utilities blueprint.

For more information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and Twitter.

About Info-Tech Research Group
Info-Tech Research Group is one of the world's leading information technology research and advisory firms, proudly serving over 30,000 IT professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

Media professionals can register for unrestricted access to research across IT, HR, and software and over 200 IT and industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].

SOURCE Info-Tech Research Group