Managing Obsolete Technologies: Strategies and Practices

Keywords: Automation, Proprietary Design, Obsolete, Proprietary, Standards-Based, COTS.

Executive Overview
In today's world, "commercial-off-the-shelf (COTS)," "open source" and "multi-supplier" are often-used terms to describe the decades-long move from proprietary to standards-based automation technologies. The reality is that there is an enormous installed base of last-generation technologies, some of which is proprietary design. ARC Advisory Group research estimates that there is approximately $65 billion dollars' worth of installed base of obsolete automation technology. ARC continues to research the industry's strategies and practices for managing proprietary, aging (mature), or obsolete technologies. ARC recently surveyed the technology and practices typically found in manufacturing plants or factories used to manage, direct, and control the production operation. This report analyzes these practices to help end users set viable strategies and practices.

Results from this survey and interviews reveal a clear message; as technology changes and end users migrate from obsolete proprietary technologies to modern COTS technology, there are tremendous implications on people, processes, and technology. Maintaining proprietary and COTS systems as well as the skill set required both represent key considerations when planning for the future. If the change is not managed effectively, end users can end up with new challenges and potentially negative business impacts. The multiple industries represented in this end user survey activity all consider automation technology strategic.

Scope
In the last half of 2011 ARC surveyed and interviewed over 60 manufacturing clients across multiple industry segments on the subject of managing obsolete technologies. The survey was broad in scope and included multiple automation technologies. Previous research by ARC centered predominantly on the top distributed control systems (DCS) suppliers. The scope of this particular ARC research includes both proprietary and commercial-off-the-shelf technology used in manufacturing and serves to highlight current end user challenges and strategies. We've included references to the applicable standards, but kept company names confidential.

Table of Contents

• Executive Overview
• Technology, People, and Process Considerations
• The Obsolescence Opportunity
• Migration to COTS Technology
• Technology Supplier's Point of View
• The Business Case for Modernization
• Strategies for Dealing with Obsolescence
• Methodology and Survey Results
• Recommendations and Conclusions

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