28 Mar 2019
New IDC Report Highlights Effective IT/OT Governance as Critical Driver for Mining Companies to Realize Value in Digital Operations
SINGAPORE, April 2nd, 2019 — IDC’s recent report, IDC PlanScape : IT/OT Governance for Mining Companies details the practical steps that mining companies need to focus on to establish effective governance across information technology (IT) and operational technology (OT). The report highlights how IT/OT governance play a key role within mining companies ’ability to deliver value from technology investments to the bottom line of the business. Furthermore, the report identifies organization of teams and their capabilities; process for decision-making; priority setting and procurement; technology management; and the extent of collaboration across IT and operational technology teams as critical drivers of success as mining companies seek to tackle how to realize the promised valued of digital operations.
Effective governance between IT and operations not only supports the realization of value, but also helps to manage and organize decision making, and blend the skills and capabilities required from IT and Operational technology (OT) to ensure improved outcomes for the business. IT is focused on information in terms of how it is organized, managed and governed, while OT is more interested in how information can impact on the process.
Governance is what assures of aligned technology decision making and execution. As companies embark on technology led transformations to create integrated digital operating environments points of friction between IT and operations will develop particularly in relation to communications networks, cloud, IoT, analytics and security.
“Mining companies require a clear outline of the who, what, why and how, which can be followed to ensure better outcomes from technology for the business. Implementing improved governance across IT and OT is a critical part of this,” says Emilie Ditton, AVP for Energy Insights at IDC Asia/Pacific.
Highlights from the report include:
• IT/OT governance includes decision-making, version control and technology management, the management of data, and the procurement of technology capabilities and the way that projects are undertaken and delivered. This level of integration across both functions of the business will see the development of an architecture that’s capable of serving IT and OT effectively while simultaneously assuring of improved access to information and insights.
• IDC cites four areas where the mining company should focus its governance changes: 1) data management and access, 2) cloud management, 3) networks, and 4) cybersecurity. This is where mining companies should build technology architecture through coordinated IT and OT governance.
• The primary stakeholders across IT, OT and the C-Suite are essential to influence the effectiveness of any governance strategy. From the CEO who informs the approach to the IT and OT governance path to the CDO who provides technology strategy support, each role has responsibilities to ensure that the company experiences the benefits of collaborative governance.
The report mentions that there are numerous strategies that mining companies can consider as it moves towards a cohesive governance framework, strategies that play to the strengths of both IT and OT while following a clearly defined value chain to a shared common goal.
“Finding an agreed approach is key and will often require collaboration, understanding, and leadership,” concludes Ditton. “Success depends on the organization’s willingness to make an organizational and cultural change that will allow for improved collaboration and decision-making within a shared governance framework.”
About IDC Energy Insights
IDC Energy Insights assists energy businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the utility and oil and gas industries.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC
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