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Industrial Control System Modernization: Unlock the Value of Automation in Utilities

Prepare for the future to stay relevant in utility digital revolution.

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This trends deep-dive report investigates strategic foresights and highlights the impact of ICS modernization programs on people, process, and technology for IT/OT leaders in utilities. Our goal is to guide you through the transformation journey by providing you practical insights and helping you overcome these challenges:

  • Drivers of ICS modernization are not fully understood by IT and OT leaders.
  • IT and OT leaders lack tactical insights to collaboratively plan and implement successful ICS modernization projects.
  • It is more difficult to change people than to change process and technology when it comes to ICS modernization.

Our Advice

Critical Insight

Utilities of the future require further advancement of automation. Modernizing your ICS is a crucial step forward in building the foundation for digital transformation. It is IT/OT leaders’ responsibility to plan and execute their organization's ICS modernization plan. Info-Tech’s insights can better prepare you to unleash the potential of advanced automation.

Impact and Result

  • Perform a cost-benefit analysis to support ICS modernization technologies and applications.
  • Optimize your plan from lessons learned prior to embarking on an ICS modernization roadmap and tactical implementation.
  • Leverage the readiness checklist for IT/OT/business leaders to guide organizations about required changes in people, process, and technology.

Industrial Control System Modernization: Unlock the Value of Automation in Utilities Research & Tools

1. Industrial Control System Modernization Storyboard – A strategic foresight trends deep-dive report that provides practical insights and readiness checklist to help IT/OT leaders in electricity utilities to de-risk grid modernization projects.

This research provides insights on the lessons learned and potential risks associated with grid modernization projects for electricity utilities. Built on expertise from industry practitioners and technology vendors, the readiness checklist on people, process, and technology identified in this report will help IT/OT leaders better prepare for grid modernization projects.

Unlock a Free Sample

Industrial Control System Modernization: Unlock the Value of Automation in Utilities

Industrial Control System Modernization: Unlock the Value of Automation in Utilities

Prepare for the future to stay relevant in utility digital transformation.

Analyst perspective

For over four decades at the center of the operations within utilities, industrial control system (ICS) has been hiding behind the curtain. Without drawing much attention, it has been slowly but surely moving the automation of utility operations forward.

With the advent of Industry 4.0, IIoT, digital twin, 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 industry research on ICS modernization explores cost-benefit analysis (CBA) of ICS modernization programs. Combining the lessons learned from previous projects and perspectives from industry practitioners and technology vendors, this report assists IT/OT leaders to optimize and de-risk any future ICS modernization projects. This report provides you with a practical readiness checklist to guide your team and the business throughout the journey.

This is a picture of Jing Wu

JING WU
Principal Research Director,
Utilities Research
Info-Tech Research Group

Executive summary

Your Challenge

  • Drivers of ICS modernization are not fully understood by IT and OT leaders.
  • IT and OT leaders lack tactical insights to collaboratively plan and implement successful ICS modernization projects.
  • People are more difficult to change than changing process and technology when it comes to ICS modernization.

Common Obstacles

  • ICS modernization projects are often costly and difficult to rationalize.
  • Executives often underestimate the IT involvement needed to support the ICS modernization program.
  • Change management implementation is often overlooked, causing unnecessary doubts among IT/OT/business teams.

Info-Tech's Approach

  • Perform a cost-benefit analysis (CBA) to support ICS modernization technologies and applications.
  • Optimize your plan from lessons learned prior to embarking on an ICS modernization road map and tactical implementation.
  • Leverage the readiness checklist for IT/OT/business leaders to guide organizations in required changes in people, process, and technology.

Info-Tech Insight

Utilities of the future require further advancement of automation. Modernizing your ICS is a crucial step forward in building the foundation for digital transformation. It is IT/OT leaders' responsibility to plan and execute your ICS modernization plan. Info-Tech's insights can better prepare you to unleash the potential of advanced automation.

Demystify the nomenclature of ICS

This is an image of three concentric circles. In the centermost circle is the word SCADA; overlapping between the innermost and the middle circle are two circles, with the terms PLC and CDS. In the middle circle is the term ICS. in the outermost circle is the term OT.

The nomenclature and technical specificities can make operational technology (OT) difficult to understand. Within utilities, OT encompasses computing systems that are used to manage operations controlling equipment, instrumentation, assets, processes, and events.
Industrial control systems (ICS) are typically used in utility mission critical control sectors,
which includes supervisory control and data acquisition (SCADA) systems, distributed control systems (DCS), and other control system configurations such as programmable logic controllers (PLC).
The lines between SCADA, DCS, and PLC at times are blurred, depending on the actual implementation of ICS for each utility sector. Factors such as control timing requirements, geographic distribution, control complexity, and others can influence the design of the ICS.

  • SCADA is often exclusively used in utilities covering long distance operations such as electricity transmission and distribution, natural gas distribution, and water distribution.
  • DCS, highly integrated with the physical equipment, is often used in large power generation sites due to its reliable and high-speed local area network to handle large quantity input/output (I/O) processing.

In the context of this research, "ICS" is used to cover both components used generically across all utility sectors and those unique to one to one sector.

Sources: NIST, 2015; YOKOGAWA, 2018; University of Skövde, 2020; Automation Forum, 2022; Securicon, 2019.

ICS has been supporting the core operations in utilities as the unsung hero

ICS, equally important as information technologies (IT), has been widely used across utilities to make operation automation possible. Through various communication systems, data and command are exchanged between the centralized control center and the equipment or instrument within plants or remote field sites. Here are many examples that ICS automation supports core operations in utilities.

This is an image of an example Industrial Control System Layout.

Industrial control system (ICS)

Evolution of SCADA modernization in utilities

Evolution of SCADA modernization in utilities

Second Generation: Distributed

Third Generation: Network

Fourth Generation: IIoT

  • Based on expensive mainframe technology
  • Limited network capabilities
  • Proprietary protocols supported only by vendors
  • Rudimentary connection between master computer and RTUs
  • Physically smaller footprint and less expensive
  • Local area network (LAN) technology allows real-time communication
  • Proprietary protocols supported only by vendors
  • Start adoption of HMI and databases
  • Simplest components from previously complex systems
  • Interconnection between wide area network (WAN) and LAN
  • Introduction of open system architecture
  • Geographically separated components communicating with each other
  • Web-based systems and interconnect with industrial internet of things (IIoT) devices
  • Start adoption of mobile devices and cloud
  • Cybersecurity becomes a major concern
  • Usage of data modelling and complex algorithms

Sources: Process Solutions, 2020; Mader Electric, 2021.

Top drivers for ICS modernization

Shrinking pool of talent

    • Aging experienced workforce.
    • Competitive market cannot keep pace with the demand.

Growing complexity of systems

    • Build overtime piecemeal and difficult to manage and costly to operate.
    • Lack of documentation and trusted knowledge base.
This is an image of the top drivers for ICS Modernization. The contents correspond to the text boxes found around this image. In the top left is: Pressure of Operational Excellence; in the top right is: Industry Revolution Propels Advancement; in the bottom Left is: Growing risk and compliance challenges; in the bottom right is: Threats to resilience and Reliability.

Industrial 4.0/IIoT challenges status quo

    • Further insertion of IT capabilities propels OT to transform.

Digital utility drives change

    • Demand of further automation to support business digital strategy or smart city initiatives, e.g. green button in Ontario.
    • Lack of situational awareness of site operations over larger geographic areas.

Stricter regulation and compliance

    • Growing demand for data logging and system monitoring for regulatory reporting.

Concerning security and safety

    • Lack of governance posts both physical and cybersecurity risks.

Aging infrastructure threatens reliability

    • Disruptions of critical services due to failure of aging equipment and instrumentation.

Obsolete technology

    • Outdated systems and no routine updates are prompt for cyber attacks.
    • Lack of available supply and support of outdated technologies.

Sources: WWD, 2020; HDR, 2021.

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Author

Jing Wu

Contributors

  • Darcy Guenette, Section Head, Renewal Generation OT Cyber Security, Ontario Power Generation
  • Malcolm Bailie, Senior Manager, Solution Delivery and Projects (APAC) for Nozomi Networks
  • Mirek Januszek, Control Systems Manager, Sydney Water
  • Gabriela Moise, Senior Manager, Planning and Architecture, EPCOR Utilities Inc.
  • Mark Brosseau, Senior Manager, Plant Control and Automation, EPCOR Utilities Inc.
  • Ming Franks, Senior Manager, Data Strategies, EPCOR Utilities Inc.
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