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.

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

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.

Industrial control system (ICS)

Evolution of SCADA modernization in utilities

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.		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.