3 influential trends we’re observing in 2023, and their impacts going forward

Driven by accelerated digital transformation, 2023 will be an important year for mining, oil & gas, water, electric, infrastructure and transportation industries. Our team of Operational Technology specialists share three influential trends we’re observing, how we’re likely to see them impacting critical operating environments across Australia, and what you can do to stay on top of upcoming disruptions in your industry.

1. Rapid adoption of 5G technology

Australia is rapidly moving towards a 5G-enabled future. With the rollout of 5G technology across the country, Australians are experiencing faster and more reliable wireless internet speeds. This is creating new possibilities for businesses and consumers alike.

In the operational technology environment, 5G technology is providing faster and more reliable wireless connectivity, which can be used to connect water and electrical utility assets, smart city infrastructure, resource assets in mining or oil & gas industries, and various remote operations to teams and control centres across Australia. This is enabling efficient communication and collaboration between team members, as well as dynamic access to data and information. In turn, business are benefiting from data driven decision making and gaining new operational insights.

Another way 5G technology is enhancing operations is through enabling the capabilities of IIoT devices and sensors, allowing them to gather and communicate larger amounts of data and optimise various aspects of process across many industries. The enhanced mobile broadband capabilities of 5G networks allow for an expansion in the number of connected devices, further increasing data points. For example, sensors can be used to monitor the condition of pipes and reservoirs, air quality, rainfall, or to optimise the usage of resources such as energy and chemicals. Sensors can be used to monitor the condition of equipment and infrastructure, which allows asset visibility and responsiveness to an asset’s needs, so that maximum operational uptime is achieved. 5G powered drones can be used for remote inspection and monitoring of remote and difficult to reach sites, while autonomous vehicles can be used to transport materials and equipment.

As the roll out of 5G infrastructure continues across Australia, there is a growing opportunity for councils to develop smart city strategies that leverage the 5G network to expand the usage of data, sensors, and other smart devices to improve city operations and the lives of citizens.

Overall, the adoption of 5G technology has the potential to bring significant benefits to critical operational environments in terms of increased efficiency, safety, and productivity. And with Telstra announcing the shutdown of 3G by 2024, there are a number of legacy devices that will migrate to the new infrastructure.

2. IT/OT Cross-Functional Teams

A key pillar of digital transformation across critical operational environments lies in the ability to infuse operational technology with information technology.

In the past, IT and OT functioned independently. OT kept industrial equipment and processes running, and IT managed business applications and systems from the corporate space. OT systems were standalone and used proprietary platforms and communications, however, the promise of a future where digital technologies are seamlessly integrated into operational workflows and enable a single pane of glass for all is blurring the lines between IT and OT responsibilities.

We’re seeing that market leading organisations across Australia’s critical operations landscape are increasingly harnessing digital technologies – such as IIoT, artificial intelligence and advanced data analytics – to improve their organisational efficiencies and agilities, and to achieve operational excellence. The successful roll out of these projects includes IT and OT teams working collaboratively and sharing best practices.

In other organisations, digitisation projects are driven by OT teams, and are aligned with business objectives, but due to a multitude of different reasons, they are implemented without any, or limited engagement with IT teams.

A successful digital transformation program is built and sustained by data-driven insights and analysis across the whole organisation. However, this requires not only connectivity and interoperability between processes and system, but alignment of people – highlighting the growing urgency for cross-functional IT and OT teams that maintain their specialisations while working together to achieve common goals and improve the organisation as a whole.

3. Cybersecurity requirements will increase

The security standard requirements for IT and OT systems are unique. The separation of IT and OT has functional roots: In a pre-digital operational environment, OT equipment was fully mechanical without any software smarts. As such, there wasn’t any need to apply the same security and access controls to the OT environment as were normal for IT infrastructure. However, as digital transformation renders processes more integrated and complex, this siloed approach to IT and OT is unsustainable.

As we move into the Industry 4.0 era, physical and digital assets that control industrial operations have truly “come online” thanks to the widespread adoption of internet connectivity. Suddenly, the machinery across operational environments is communicating and providing the organisation with a wealth of knowledge through contextualised data. But this connectivity is also creating more attack surface for attackers to enter through.

Several well-known attacks used vulnerabilities created by IT/OT convergence, including the Triton malware attack that shut down Saudi Arabia’s Red Sea refinery, which targeted safety systems throughout the refinery and put it at risk of explosion.

Attackers around the world no longer view IT and OT as distinct, partitioned regions, so it is important going forward that IT and OT security are discussed as one. Organisations need to be aware of the growing risk of cyberattacks on OT environments, so that they can better manage their complexities. 

Are you prepared for these trends?

As we move forward into this new era of digital transformation, it is critical to stay informed and adapt to the ever-changing landscape to stay competitive and thrive.

Almost every imaginable business process can now be optimized with a digital platform. Digital Transformation, and the integration of digital technology into all areas of business, is fundamentally changing how businesses operate and deliver value to customers. But there is a downside: with so many options, it’s increasingly difficult to know which trends, and which solutions, will make a tangible difference for your organisation.

As your IT/OT enablement partner, Madison Technologies ensure you only invest in platforms and technologies that deliver real impact and long-term value. Our 30-year legacy of providing resilient industrial technology solutions means we’re familiar with many of the challenges the industrial sector faces as it embraces digital transformation. Our team of specialists have the knowledge and experience to provide purpose-built solutions that will unlock data insights and business intelligence.

Interested in learning more? Talk to us today, either by booking a solutions workshop with our specialist team, or by calling 1800 72 79 79.