IoT vs OT: Differences, Characteristics & Use Cases

The Internet of Things (IoT) refers to a network of physical devices that connect to the internet. Examples of IoT devices include smart thermostats, wearable fitness trackers, and even your smart refrigerator at home. These devices gather information and communicate with other devices or systems on the internet.

On the other hand, OT, or Operational Technology, involves hardware and software that detects or causes changes through direct monitoring and control of physical devices, processes, and events. OT is crucial in industries like manufacturing, energy, and transportation. 

OT includes systems like SCADA (Supervisory Control and Data Acquisition) which monitors industrial processes, or PLCs (Programmable Logic Controllers) which control machinery on the factory floor.

While both IoT and OT deal with physical devices, they serve different purposes. This article will highlight the differences that mark these two networking technologies apart and the uses they are best suited for.

Key characteristics of IoT

Connectivity

IoT devices connect to the internet, allowing them to gather and share data. Take smart thermostats, for instance. They adjust home temperatures based on our preferences and external weather conditions. This connectivity helps you enjoy better efficiency and comfort.

Frequency and granularity of data collection

IoT devices continuously gather detailed information. Take wearable fitness trackers as an example. They monitor your heart rate, steps, and even sleep patterns around the clock. This constant data flow provides valuable insights into your health and daily activities.

Automation and remote control

Many devices can operate independently or be controlled remotely. A good example is smart irrigation systems in agriculture that adjust water levels automatically based on real-time weather data, conserving resources without manual intervention. 

Similarly, smart street lights in cities adjust their brightness depending on pedestrian activity, ensuring energy efficiency and safety.

Scalability

You can easily add more IoT devices to your network. For example, expanding a smart lighting system in an office building is straightforward. You just install additional connected lights that seamlessly integrate with the existing setup. This flexibility allows you to scale your solutions as needed.

Security

Connectivity, however, is a double-edged sword in the world of IoT. While these devices bring many benefits, they also introduce potential vulnerabilities. Since they are internet-connected, these devices can be targets for cyber attacks. 

For example, a hacked smart HVAC system in an office building can cause a major disruption, leading to uncomfortable or even unsafe working conditions. Thus, securing these devices is paramount.

Data analytics

The vast amount of data collected by IoT devices needs to be processed and analyzed. The insights you draw from that data can help you make better decisions. 

For instance, analyzing data from wearable fitness trackers can guide you to adopt healthier habits. Similarly, data from smart irrigation systems helps farmers optimize water usage and improve crop yields.

Understanding these key characteristics of IoT gives you a clearer picture of how it operates within company networks. It also underscores the importance of balancing the advantages with the necessary security measures.

Key characteristics of OT

Control

Unlike IoT, which focuses on connectivity, OT is all about directly managing physical processes and devices. Take a manufacturing plant, for example. OT systems like PLCs (Programmable Logic Controllers) control the machinery on the assembly line. 

On assembly lines, OT systems ensure that robotic arms move with precision and that parts fit together perfectly. If something goes wrong, the system can immediately stop the line to prevent defects or accidents.

Automation

OT systems don't just monitor; they actively control operations. In a power plant, SCADA systems continuously track the performance of turbines and generators. 

If there's an issue, like a drop in efficiency, the system can make real-time adjustments to optimize performance. This level of automation keeps everything running smoothly without constant human intervention.

Reliability and stability

Operational technology systems are designed to function in harsh environments where downtime is not an option. An example is the oil and gas industry where OT controls the operation of drilling rigs and pipelines. 

These systems must withstand extreme conditions, from deep-sea pressures to desert heat. They are built to last and keep working, ensuring continuous production.

Security

OT systems are often isolated from the internet, reducing the risk of remote cyber-attacks. However, this doesn't make them invulnerable. For instance, the security of a railway's signal system is crucial. 

Any breach could disrupt train schedules or even cause accidents. Therefore, securing OT systems is more about protecting critical infrastructure and ensuring operational continuity.

Data from OT systems is usually more specialized and less frequent compared to IoT. Instead of continuously streaming data, these systems collect specific, vital information needed for control and safety. 

In a chemical plant, for example, sensors might only send data during critical phases of production. This focused data collection helps operators make informed decisions without being overwhelmed by information.

Custom-built for specific tasks

Unlike IoT devices, which can be easily added or replaced, OT components are integral parts of larger systems. For example, the SCADA system in a water treatment plant is tailored to monitor and manage the complex process of purifying water. Upgrading or changing these systems requires careful planning and expertise.

The characteristics we have discussed help you understand how OT plays a crucial role in various industries. Whether it's controlling a manufacturing line, managing a power plant, or ensuring the safety of a railway network, OT systems are essential for smooth and efficient operations.

Differences between IoT and OT

Focus and purpose

The main difference between IoT and OT is their focus and purpose. IoT is all about connectivity and data sharing. In a smart home, it connects a smart thermostat to the internet to gather weather data and adjust your home's temperature. 

This makes your living space more comfortable and energy-efficient. In an office, a smart HVAC system does the same thing, optimizing the climate based on the number of people present.

Now, OT is a different beast. Its primary focus is controlling and automating physical processes. Think about a power plant. In this setting, OT systems like SCADA ensure the turbines and generators operate safely. 

The systems monitor performance and make real-time adjustments to maintain efficiency and safety. Its main goal is to keep things running smoothly without constant human intervention.

Let’s consider data collection. IoT devices are like data sponges. They continuously gather detailed information, whether it's your fitness tracker monitoring your heart rate or a smart streetlight adjusting its brightness based on pedestrian activity. 

OT, however, plays it differently. It collects more specialized, often less frequent data. In a chemical plant, sensors provide critical information only during key production phases. This helps operators make crucial decisions without being overloaded with data.

Security is another area where their purposes diverge. IoT devices are connected to the internet, making them prone to cyber attacks. Think about a smart security camera at your home. If hacked, it could lead to privacy breaches. 

In contrast, OT systems are typically isolated from the internet. This reduces their vulnerability to remote attacks, but they are still critical to operations. So, while a breach in the control system of a manufacturing plant is less likely, it could halt production, causing significant losses if it happened

Automation in IoT often aims to enhance convenience and efficiency. For example, a smart irrigation system in agriculture adjusts water levels based on weather forecasts, conserving water and ensuring optimal plant growth. 

In OT, automation is about ensuring reliability and stability. Consider the robotic arms on an assembly line controlled by PLCs. They ensure parts are assembled with precision, stopping the process if an error occurs to prevent defects.

The environments where IoT and OT systems operate also highlight their different purposes. IoT devices are found in everyday settings—homes, cities, and offices—where they improve convenience and efficiency. 

OT systems, however, thrive in industrial environments where reliability is key. Think about the oil and gas industry. OT systems control drilling rigs and pipelines, designed to withstand extreme conditions and ensure uninterrupted operations.

Lastly, IoT systems can easily scale up. You can add more connected devices to a smart home network without much hassle. But OT systems are often custom-built and integral parts of larger installations. 

Upgrading a SCADA system in a water treatment plant isn’t a plug-and-play scenario; it requires detailed planning and specific expertise.

Connectivity and communication

IoT devices are designed to connect to the internet and communicate with each other or a central system. This interconnectedness allows for seamless automation and remote control.

In a business context, an IoT-enabled office might have smart lighting systems that adjust based on natural light levels and occupancy. They communicate with each other and with a central control system over Wi-Fi or other wireless networks. 

Similarly, in agriculture, IoT devices like soil moisture sensors connect to a central system to optimize irrigation. These devices send data to the cloud, where algorithms analyze it and send back instructions to adjust water levels, all in real-time.

Now, OT systems handle connectivity and communication quite differently. OT is more about robust, reliable communication within isolated networks. In industrial settings, you'll find that OT systems like SCADA use specialized communication protocols. These protocols are designed for reliability and real-time control. 

For instance, in a manufacturing plant, PLCs communicate with each other over a dedicated, often wired network to control machinery. This setup ensures that even if one part of the system fails, the rest can continue to operate without disruption.

OT systems are typically not connected to the public internet. This isolation helps keep them secure from remote cyber threats. For example, in a power plant, the control systems for turbines and generators communicate over a closed network. This network is not exposed to the vulnerabilities of the internet, ensuring the continuous and safe operation of critical infrastructure.

However, this doesn't mean OT systems are communication-averse. They often use industrial Ethernet or other high-reliability networks that provide real-time data exchange. 

In a railway signal system, for instance, OT components communicate to manage train movements. These systems use highly reliable, often redundant communication paths to ensure signals are correctly transmitted, reducing the risk of accidents.

While IoT thrives on the flexibility and reach of internet connectivity, allowing for remote monitoring and control, OT prioritizes secure, reliable communication within more contained environments. 

Both IoT and OT have their own unique communication protocols tailored to their specific needs. Understanding these differences helps you manage and integrate these systems better within your company networks.

Security considerations

When we look at security for IoT and OT, the stakes and challenges are quite different. IoT devices are all about connectivity, which unfortunately makes them prime targets for cyber attacks.

For IoT devices, security measures like strong passwords, regular firmware updates, and network segmentation are crucial. Each device connected to the internet is a potential entry point for attackers. Ensuring these devices are regularly updated and using secure communication protocols can help mitigate the risks of attack and sabotage.

On the flip side, OT systems often operate in isolation from the public internet. This isolation, sometimes called air-gapping, makes them less vulnerable to remote cyber attacks. However, they’re not completely safe. If an attacker gains physical access or uses insider threats, they could disrupt operations, leading to downtime and financial loss.

For OT, physical security and strict access controls are vital. In energy systems like a power plant, unauthorized access to control systems could have catastrophic consequences, including equipment damage, power outages, or even safety incidents. Implementing robust access controls, monitoring for unusual activities, and regular security audits are essential to protect these critical systems.

The focused and less frequent data collection in OT also means that cybersecurity measures can be more specialized. For example, in a chemical plant, sensors might only send data during key production phases. 

If these communications are encrypted and carefully monitored, it helps ensure they’re not tampered with. But, because OT systems are often custom-built, any updates or changes require careful planning and expertise to avoid disrupting operations.

In contrast, IoT thrives on continuous data flow. This constant communication needs real-time monitoring to detect and respond to threats quickly. Cybersecurity measures like intrusion detection systems and behavior analytics can help identify suspicious activities before they escalate.

Integration with IT systems

Integrating IoT and OT with IT systems is a delicate balancing act. With IoT systems, the primary challenge is managing the huge influx of data. 

In a smart office building with countless IoT devices, each sensor, thermostat, and light sends data to IT systems for analysis. You need robust data management platforms to handle this volume. Solutions like cloud storage and big data analytics come into play. 

For instance, a smart HVAC system might send temperature and occupancy data to the cloud. From there, IT systems analyze the data to optimize energy use.

On the other hand, integrating OT with IT requires a different approach. OT systems often operate in isolation for security reasons. Connecting them to IT systems can expose them to new vulnerabilities. However, the benefits of improved efficiency and real-time data analytics make it worthwhile. 

Let's take a manufacturing plant as an example. By integrating SCADA systems with IT, you can monitor production metrics in real-time. This helps in predictive maintenance, reducing downtime and saving costs. However, you must ensure secure gateways or firewalls to protect these critical systems from cyber threats.

One of the hurdles you will face is the difference in communication protocols. IoT devices typically use internet-based protocols like Wi-Fi, Bluetooth, or Zigbee. These protocols are designed for flexibility and ease of integration with IT systems. 

For example, in a smart city, traffic lights equipped with IoT sensors send data over Wi-Fi to a central IT system. This data helps in managing traffic flow efficiently. 

In contrast, OT systems use specialized protocols like Modbus or OPC-UA. These are designed for reliability and real-time control, and integrating them with IT often requires protocol converters or gateways.

Security is another significant concern when integrating IoT and OT with IT systems. IoT devices connected to the internet are vulnerable to cyber attacks. You can reduce smart systems’ vulnerability to cyber attacks by implementing network segmentation and using strong authentication methods. 

For OT systems, the focus should be on maintaining their integrity and reliability. In a power plant, integrating OT with IT allows for better data analytics and operational insights. However, you must implement stringent access controls and continuous monitoring to safeguard against breaches.

Integration also demands careful planning around data flow and processing. IoT devices generate continuous streams of data that need real-time processing. 

OT systems, however, often generate data in response to specific events. In a railway network, OT systems might only send data during signal changes or train movements. Integrating this with IT requires event-driven data processing models. You, therefore, need to design your IT infrastructure to handle these differing data characteristics effectively.

Navigating these integration challenges helps you leverage the strengths of both IoT and OT. Understanding their unique needs and implementing tailored solutions ensures you can create a seamless and secure operational environment.

IoT use cases

Offices

In office settings, IoT technology can be used to power smart HVAC systems. These systems adjust the climate based on real-time occupancy data. 

If the meeting room is full, the system lowers the temperature. Once it’s empty, it reduces power usage. This kind of automation doesn't just improve comfort; it significantly cuts down on energy bills.

Agriculture

A typical IoT use case in agriculture is smart irrigation systems that use soil moisture sensors and weather forecasts to determine the optimal watering schedule. 

Instead of manually setting time intervals, the system adjusts water levels automatically. This ensures crops get just the right amount of water, conserving resources and boosting yields.

Retail stores

Smart shelves can monitor product levels using weight sensors. When an item is running low, the system sends a notification to restock. This ensures that popular products are always available, enhancing customer satisfaction. 

Similarly, smart beacons can interact with customers' smartphones to provide personalized offers based on their location within the store. This creates a more engaging shopping experience and drives sales.

Healthcare

This is another area where IoT is making a significant impact. Wearable fitness trackers continuously monitor your heart rate, steps, and sleep patterns. This data syncs with health apps to provide real-time insights into your well-being. 

In hospitals, IoT devices can monitor patients’ vital signs and send alerts to doctors if something is amiss. This real-time monitoring can be life-saving, allowing for quicker interventions.

City administration

Cities are getting smarter with IoT, too. Smart streetlights adjust their brightness based on pedestrian activity. If no one is around, they dim to save energy. When someone walks by, they brighten up for safety. 

Traffic management is another use case. IoT sensors gather data on vehicle flow and adjust traffic signals in real time to reduce congestion. This makes commuting smoother and reduces pollution from idling cars.

Logistics

Fleet management systems use IoT to track the location and condition of vehicles in real time. Sensors can monitor everything from fuel levels to engine health. 

If there’s a problem with a vehicle, the system alerts the fleet manager immediately. This streamlines vehicle monitoring and maintenance and ensures timely deliveries.

OT use cases

Power plants

OT systems like SCADA monitor and control the operation of turbines and generators. These systems ensure everything runs smoothly and efficiently, adjusting operations in real-time to maintain optimal performance. 

If a turbine shows signs of overheating, the SCADA system can automatically shut it down to prevent damage and alert maintenance teams immediately.

Manufacturing

OT is at the heart of automation. Programmable Logic Controllers (PLCs) are used to control assembly lines. For example, a car manufacturing plant where robotic arms assemble parts. 

These PLCs ensure every arm moves with precision, fitting parts together seamlessly. If a fault is detected, the system can halt the production line to avoid defects, ensuring high-quality output and worker safety.

Oil and gas

This industry heavily relies on OT. Drilling rigs, pipelines, and refineries are managed using OT systems to ensure continuous operation under extreme conditions. 

For instance, in offshore drilling, OT systems monitor the pressure and flow of extracted resources. They make real-time adjustments to prevent blowouts and ensure safe extraction processes. 

Similarly, in pipeline operations, OT systems detect leaks and ruptures, triggering automated shutdowns to minimize environmental impact and safety risks.

Railway systems

Signal systems, track switches, and communication networks are all controlled by OT to ensure safe and efficient train operations. For example, OT systems manage the scheduling and routing of trains, reducing delays and preventing collisions. 

If an issue is detected on the railway tracks, these systems can automatically halt approaching trains and notify operators, ensuring passenger safety and timely interventions.

Water treatment works 

OT systems are crucial for managing the water purification process. SCADA systems monitor water quality in real-time, ensuring that it meets safety standards. 

If contaminant levels rise, the system can adjust chemical dosages and filtration processes automatically. This ensures that clean, safe water is continuously supplied to communities, reducing the risk of waterborne diseases.

Energy distribution sector

Consider smart grids where OT systems manage the flow of electricity from power plants to consumers, optimizing distribution to avoid overloads and blackouts. 

OT systems monitor the power grid's health, quickly responding to issues like power surges or equipment failures. If a fault occurs, the system can isolate the affected area and reroute electricity to maintain supply, ensuring minimal disruption.