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Executive Overview
The ARC Industrial Pacesetter Report series identify the strategies, technologies, and leadership practices that distinguish top-performing industrial organizations. The ARC Industrial Pacesetter Awards build on this foundation by recognizing companies that have successfully translated these principles into measurable business results. The report defines what leadership looks like; the awards showcase who is leading. Together, they provide a practical framework and real-world examples for accelerating industrial transformation.
As industrial organizations progress in their digital transformation, IT/OT/ET convergence has become essential for driving efficiency, security, innovation, and operational resilience. However, companies fall into different maturity levels—Leader, Mainstream, and Laggard—each facing unique challenges and opportunities. Leader companies have successfully integrated IT, OT, and ET by fostering strong executive support, structured collaboration, and advanced cybersecurity measures, allowing them to extract measurable business value.
Leader companies excel by integrating IT, OT, and ET through strong collaboration and robust cybersecurity to drive measurable business value. Mainstream companies are making progress but face challenges with cross-domain expertise, organizational resistance, and aligning technologies and frameworks. Laggard companies struggle with siloed operations, unclear strategies, and limited investment.
Mainstream companies are actively implementing convergence strategies but often struggle with cross-domain expertise, organizational resistance, and technology integration. Laggard companies remain in the early stages, facing challenges such as siloed operations, unclear strategies, and limited investment. This report explores the key differentiators between these groups, the hurdles they face, and the strategies organizations can adopt to accelerate their IT/OT/ET convergence maturity.
This report identifies key characteristics that distinguish Leader companies in IT/OT/ET convergence from Laggard companies. Leader companies are characterized by their cross-divisional collaboration and the ability to deliver measurable improvements in productivity, cost, and quality. They measure and track performance and deliver business value from their convergence efforts. The survey data also emphasizes the importance of ET convergence with IT/OT cybersecurity integration efforts.
Finally, the report provides recommendations for companies aiming to become a Leader in IT/OT/ET convergence. By following these guidelines, companies can enhance their operational efficiency, adaptability, and resilience in an increasingly complex industrial landscape.
IT/OT/ET Solves Many Business Challenges
IT/OT/ET convergence mitigates many business problems by breaking down silos, improving data accessibility, and enhancing operational efficiency. By integrating IT, OT, and ET systems, organizations create a unified infrastructure that enables real-time data sharing, leading to better fact-based decision-making and faster issue resolution. Enhanced cybersecurity and data governance reduce risks associated with cyber threats, regulatory non-compliance, and data inaccuracies. Standardized technology frameworks improve system interoperability, minimizing downtime and reducing costly inefficiencies. Additionally, convergence supports predictive maintenance, energy optimization, and supply chain resilience, ultimately driving increased productivity, sustainability, operational resilience, and long-term business success.
What Makes a Leader and What Can Laggard Companies Learn from Them
Leader companies in IT/OT/ET convergence stand out by having a clear strategic vision, strong executive support, and structured collaboration across IT, OT, and ET teams. They embed cybersecurity and data governance into their convergence strategy, ensuring secure and compliant operations while leveraging standardized technologies for more successful integration. Governance councils and centers of excellence play a key role in fostering cross-domain expertise, while continuous performance tracking helps Leader companies optimize convergence efforts for measurable business impact, including improved efficiency, sustainability, innovation, and operational resilience.
Laggard companies can accelerate their convergence journey by adopting key practices from Leader companies. Developing a clear roadmap with executive buy-in, fostering collaboration between IT, OT, and ET teams, and prioritizing cybersecurity and data integrity are crucial first steps. Standardizing technologies and frameworks helps to ensure interoperability and scalability, while aligning convergence efforts with business outcomes further maximizes value. By following these approaches, Laggard companies can overcome implementation challenges and drive greater long-term competitiveness in an increasingly connected industrial landscape.
Table of Contents
Executive Overview
ARC Pacesetter Report Methodology
IT/OT/ET Convergence Leadership Report
Analysis – Characteristics of Leader Companies
IT/OT/ET Cybersecurity
Technology and Roadmap
Recommendations
Appendix
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