IT/OT Alignment Maturity Framework in KIPIC
Date: 25 October 2018
Speaker: Ahmad A. AlmulaifiManager Information Technology
Kuwait Integrated Petroleum Industries Company
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KIPICwas Launched on 1st of May 2017
It is the Newest Subsidiary of Kuwait Petroleum Corporation (KPC).
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Refinery LNGI Petrochemicals
KIPIC is a multi industrial company that
is responsible for managing & operating:
*Anticipated to be operational progressively from 2019 to 20245
Agenda
• INTRODUCTION
• MOTIVATIONS & BENEFITS
• CULTURE & FOCUSED
• MATURITY MODEL LEVELS
• RECOMMENDATIONS
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Digital Transformation
Smart Refinery
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1,200 companies
Consumer goods
Process industries
Industrial equipment
& engineering
Electronics
Automotive
Industrial manufacturing
9%
33%
21%
14%
13%
10%
Digitalization in Oil & Gas
Source: Strategy&/PWC 2018 Digital Operations Study
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Digitalization in Oil & Gas
Revenue Increase 2018 - 2022
Efficiency Gains/Cost Reduction2018 -2022
Digital Champions (Highly Digitized) Digital Novices (Limited Digitized)
25%
9%
20%
7%
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Information Operational
IT OT
Alignments is necessary for digitalization
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Information Operational
IT OT
Is the use of computers/processing to store, retrieve,
transmit, and manipulate
data/information, in thecontext of a business of
enterprise (ERP).
Is hardware and softwarethat detects or causes a
change through the direct
monitoring and/or control ofphysical devices, processes
and events in the industrial
enterprise.
Source: https://en.wikipedia.org
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Information Operational
IT OT
Apps & Web App
EAM (Asset
Management)
IT Infra: Network, Storage, Servers
New Tech: AI, Big data
HR Systems
Finance/Payroll
SCADA/
DCS
Embedded computing Technology
Programmable logic controllers
(PLC)
Energy Managem
ent System (EMS)
Sensors, monitors &
fault indicators
Manufacturing
Execution Systems (MES)
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Information
IT
Apps & Web App
EAM (Asset
Management)
IT Infra: Network, Storage, Servers
New Tech: AI, Big data
HR Systems
Finance/Payroll
Operational
OT
SCADA/
DCS
Embedded computing Technology
Programmable logic controllers
(PLC)
Energy Managem
ent System (EMS)
Sensors, monitors &
fault indicators
Manufacturing
Execution Systems (MES)
IT/OT Alignment Motivation & Benefit
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Benefit of IT/OT Alignment
Reduce Risk
Cybersecurity, Manage updates/ patches
DR (disaster recovery)
Best practices and standards
Reduce complexity and avoid inconsistency
Reduce Cost
Lower projects Cost & Skills/Manpower
Infrastructure management/operation
Software licenses, procurement/life cycle
Support and Maintenance
Avoid un-needed redundancy
Source: Gartner - G00277331
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Benefit of IT/OT Alignment (Cont.)
Increase agility and speed
Faster implementation
Aligned standards
Unified teams
Response to business changes
Source: Gartner - G00277331
Leverage information
New technology including IIoT AI/Deep
learning/Big data
Asset reliability
Predictive maintenance
Operation efficiency and overall v isibility
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IT/OT Alignment Challenges
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IT & OT Culture & Focused
Information
IT
Operational
OT
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IT Culture & Focused
Source: Gartner - G00277331
Information
IT
Asset refresh: 3 to 4 years
Focused: Security, Confidentiality, Integrity, Privacy,
Availability, New Technology and Performance.
Incidents (Interruption/Downtime): Loss of
information /Time (tolerable).
Security: Contentious performing security measures.
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IT & OT Culture & Focused
Source: Gartner - G00277331
Asset refresh: life span of up to 15 years or longer.
Focused: Absolute focus on availability and safety.
Incidents (Interruption/Downtime): May lead to
loss of life & interruption of the actual production.
Security: Performing scans for asset management,
vulnerability management and antiv irus is not always
possible.
Operational
OT
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KIPIC IT/OT Alignment Methods & Approaches
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KIPIC IT/OT Alignment
Methodology & Approaches
Implementing Standards (ISA 95):
“The international standard for the integration of enterprise (IT) and control (OT)
systems. It comprises models and terminology that can be used to determine
the information to be exchanged between commercial IT systems and systems
for production, maintenance and quality”.
Implementing Best Practices
Gartner Maturity Model IT/OT Alignment.
Source: https://www.isa.org/isa95
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Maturity Model IT/OT Alignment
Source: Gartner G00277331
Area of Focus
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness
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Level 1: Awareness of Enterprise OT Systems
Landscape and Degree of Convergence
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness Question: What we have?
Benefits: Awareness of OT systems landscape
diversity of technologies and degree of
convergence.
Area of focus: Siloed technology.
Governance: Minimal;
Vendors and sourcing: Start discovering
joined venders IT/OT.
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Level 1: Awareness of Enterprise OT Systems
Landscape and Degree of Convergence
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness
KIPIC Approach:
Governance :IT/OT Taskforce was
established
Awareness:
Workshops with OT to discover
venders and intended systems
landscape
Digital Strategy & Roadmap
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Level 2: Creating Foundation (& buy-in)
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness Question: Why we need alignment?
Benefits: Securing management buy-in to proceed
with changes in governance. Create foundation
between IT & OT.
Area of focus: Business, system and technology
management
Governance: Risk avoidance though concede
implementing impotent alignment aspects (level of
cyber security, software life cycle..) , SLA-based,
technology-centric.
Vendors and sourcing: IT and OT vendors are
involved in discrete crossover projects.
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Level 2: Creating Foundation (& buy-in)
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness KIPIC Approach:
Buy-in from KIPIC C-level-management.
Understanding between IT & OT
Taskforce was formed for decision making
Consultancy & technology decision is
governed between IT and OT
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Level 3: Rationalization and Alignment of OT
Management and Methods (reduce risk)
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness Question: How to start implementing ?
Benefits: minimize cyber risk and failure through software
management errors by establishing effective OT
governance. Establish Standardization.
Area of focus: OT software portfolio management.
Governance: Architecture and technology strategy is
linked to business investment decisions.
Vendors and sourcing: The vendor portfolio is extended to
include vendors with IT/OT integration capability.
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Level 3: Rationalization and Alignment of OT
Management and Methods (reduce risk)
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness KIPIC Approach (in process):
To Implementing ISA 95 (MES/MOM)
Consultancy Phase
Build Digitalization roadmap:
Long, medium & short
Build industry 4.0 culture
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Level 4: Integration of IT and OT Systems and
Infrastructure (Leverage Data)
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness Benefits: Access and v isibility of the data, with a continuous
flow of data, regardless of where it is sourced. During this
phase, organizations have greater access to OT data. This
access enhances:
Visibility (real-time data)
leverage of data across OT and IT to support big data/AI/Deep
learning for real-time decision & Condition-based maintenance
Governance: Driven by business benefits; integrated IT/OT;
data-centric, not technology-centric.
Vendors and sourcing: Strategic vendor relationships are
developed in the area of IT/OT integration.
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Level 4: Integration of IT and OT Systems and
Infrastructure (Leverage Data)
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness KIPIC Approach (plan to reach):
Plans to reach this level as part of the digital
roadmap.
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Level 5: Optimize and Standardize Processes
(Experience Transformation)
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness Benefits: Improved and standardized processes result in:
Shared staff for supporting OT systems
Standardized OT sourcing
Area of focus: Re-evaluation of existing and potential
ecosystem for business and technology, including
organizational structure, responsibilit ies and accountabilities.
Governance: Balances sustaining existing business with
enterprise transformation; includes stakeholder issues fully
integrated with enterprise strategic v ision and execution.
Vendors and sourcing: Sourcing around IT/OT is closely
integrated with business and digital strategy.
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Level 5: Optimize and Standardize Processes
(Experience Transformation)
Source: Gartner G00277331
Level 5: Optimize & Standardize
Level 4: Integration of IT & OT
Level 3: Rationalization
Level 2: Creating Foundation
Level 1: Awareness KIPIC Approach (plan to reach):
Plans to reach this level as part of the digital
roadmap.
This doesn't mean a total merging of IT/OT; but
a clear responsibilities.
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Recommendations
Area of Focus
IT/OT alignment is critical I the digitalization journey.
Full merging of IT and OT may not be visible in some organization; but a
level of alignment is necessary.
Alignment level and merging depend on organization size,
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Thank you Any Questions