it/ot alignment maturity framework in kipic

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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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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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


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


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


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






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






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)






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)






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)






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)






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)






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)






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)






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)






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

it/ot alignment maturity framework in kipic

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