Why IT and OT Confusion is Costing Your Organisation — and How to Fix It

“The most dangerous phrase in business is: ‘We’ve always done it this way.’” — Grace Hopper

In boardrooms, control rooms, and IT helpdesks across Australia, one subtle misunderstanding continues to hold back digital transformation, increase cybersecurity risks, and cause expensive project failures: the confusion between Information Technology (IT) and Operational Technology (OT).

It sounds harmless — after all, they both involve technology, right? But the consequences of mistaking one for the other can be critical.

Let’s pull back the curtain on why so many teams struggle with this distinction, and what you can do to finally clear the fog.

The Short Story

• IT (Information Technology) and OT (Operational Technology) serve fundamentally different purposes — and treating them as the same creates real-world risks.

• IT focuses on data, users, and business systems; OT is about machines, processes, and physical operations.

• A common problem arises when corporate IT policies or solutions are applied to OT environments without adaptation.

• The risks include outages to critical infrastructure, non-compliance with industry regulations, and major cyber vulnerabilities.

• Understanding the divide — and where they now intersect — is critical for modern utilities, manufacturers, transport networks, and any industry with field-based or industrial systems.

• A new mindset is needed: one that respects the heritage and operational demands of OT while embracing the agility and innovation of IT.

The Core Problem: Misunderstanding the Divide

IT and OT grew up on different sides of the tracks.

• IT is the world of Microsoft 365, cloud platforms, corporate Wi-Fi, and helpdesk tickets. It's built for rapid change, user productivity, and data management.

• OT is the realm of SCADA systems, PLCs (programmable logic controllers), DCS (distributed control systems), and control rooms. It's built for stability, safety, and 24/7 availability.

The issue is this: many organisations assume that because OT now connects to networks, it should be managed like IT. That assumption causes real problems.

In Australia, several energy utilities have faced system outages because routine IT patching schedules were applied to OT assets — assets that were never designed to be restarted weekly, or even annually.

The result?

• Operations grind to a halt.

• Compliance breaches occur.

• And trust between OT and IT teams breaks down.

Why This Problem Persists

Several forces contribute to the confusion between IT and OT:

• Digital convergence — OT systems are increasingly connected to IT networks to enable analytics, reporting, and remote access.

• Cybersecurity mandates — Regulations like the Security of Critical Infrastructure Act (SOCI) require stronger cyber protections, and many organisations look to IT for solutions.

• Corporate restructuring — OT often falls under the IT department during organisational changes, leading to unfamiliarity with legacy control systems.

But what works in IT — like frequent patching, active directory control, and multi-factor authentication — must be re-evaluated before being applied in an OT context.

Here’s where the core issue lies:

• IT systems are data-centric.

• OT systems are process-centric.

• They have different priorities, uptime requirements, lifecycles, and risk tolerances.

Key Distinctions Between IT and OT

Common Mistakes When IT Tries to Manage OT

Let’s look at some mistakes that come up time and again in Australian industry:

1. Applying enterprise antivirus to embedded OT devices.
   This can result in system crashes or memory overloads on devices not designed for such software.

2. Rolling out company-wide password expiry policies.
   Field operators may be locked out of critical control systems during emergencies due to expired credentials.

3. Scheduling automated restarts for updates.
   Restarting a SCADA server without coordination can halt entire industrial processes.

4. Assuming cloud-first solutions are fit for purpose.
   Many OT systems require ultra-low latency and local control, making cloud unsuitable without edge solutions.

What OT Professionals Wish IT Knew

• Downtime isn’t an inconvenience — it’s a hazard.

• “Legacy” systems often exist for a reason: they’re proven and dependable.

• Physical safety and compliance often trump agility and innovation.

• Visibility into OT isn’t just about monitoring — it’s about predictability.

Likewise, OT teams can benefit by understanding:

• IT brings scale, efficiency and cybersecurity maturity.

• Modern OT environments can’t operate in silos anymore.

• Collaboration leads to better asset visibility and threat mitigation.

What Organisations Can Do Differently

To bridge the IT/OT divide, organisations need to do more than attend one-off workshops or draft policy documents. It starts with recognising the lived reality of both environments.

Key strategies for success:

• Create a shared governance framework that respects the unique needs of IT and OT.

• Invest in cross-training for staff so that IT teams understand operational risk, and OT teams grasp security fundamentals.

• Establish a 'translation layer' — either a role or a team — that serves as the bridge between both worlds.

• Adopt segmentation strategies, like ISA/IEC 62443, to protect OT without restricting it.

Common Principles for IT/OT Alignment

• Risk tolerance in OT must lead strategy — IT should adapt to this.

• Centralised visibility is good, but centralised control may not be.

• Cybersecurity in OT must protect availability first.

• Harmonisation is better than convergence.

The Bottom Line

The difference between IT and OT isn’t academic — it’s operational, strategic, and in some cases, existential.

Treating your control systems like a laptop fleet might seem efficient until it causes a blackout, a water quality failure, or a breach of safety laws.

But when both teams understand the nuance, respect the context, and learn from each other — the result is safer, smarter, and more resilient operations.

Understanding these subtle differences isn't just helpful. It’s business-critical.