Why Interoperability Can Be A Tough Sell In Manufacturing
In practice, interoperability can be a surprisingly tough sell for manufacturers. This is likely due to a few reasons.
Bill Rokos, Forbes Councils Member
Forbes
3 min read
6/10
Key Takeaways
A 2024 MESA survey found that 67% of industrial companies rank data integration as their top operational challenge, yet only 28% have a formal interoperability strategy in place.
Installing a single connection adapter for a legacy PLC can cost between $15,000 and $50,000, not including annual licensing and maintenance fees, making ROI approval difficult.
Over 60% of manufacturing cybersecurity incidents in 2023 involved systems that were newly connected to enterprise IT networks, according to a Claroty report, heightening reluctance to open OT networks.
The OPC UA standard is now supported by more than 400 device vendors, but backward compatibility with pre-2010 equipment remains a significant technical hurdle.
Industry analysts estimate that full interoperability across a mid-sized factory can yield a 12–18% productivity gain through reduced downtime and faster changeovers, but the upfront investment often takes 3–5 years to recoup.
**Hook**: Even with Industry 4.0 dominating headlines, most manufacturers still cannot make their machines talk to each other—and there's a surprising reason why. **Lead**: A recent Forbes Tech Council article highlighted why interoperability remains a tough sell in manufacturing, striking at the heart of digital transformation efforts. Despite billions invested in smart factories, the seamless exchange of data between legacy and new systems is still the exception, not the rule, slowing productivity gains and Industry 4.0 adoption. **Context**: Interoperability—the ability of different systems, devices, and software to communicate and work together—has been a goal for decades. Initiatives like the Open Platform Communications Unified Architecture (OPC UA) and the Reference Architecture Model Industrie 4.0 (RAMI 4.0) were designed to standardize communication. Yet, in practice, manufacturers often shelve interoperability projects. The root causes are a mix of technical debt, organizational inertia, and a murky return on investment. A 2024 survey by the Manufacturing Enterprise Solutions Association (MESA) found that 67% of manufacturers consider data integration as their top challenge, but fewer than 30% have a clear interoperability roadmap. **Key Details**: The Forbes piece, authored by a tech council member, points to three core reasons interoperability is a hard sell. First, legacy equipment—often 10–20 years old with proprietary protocols—creates high replacement costs. Second, ROI is difficult to quantify; “softer” benefits like better decision-making or easier troubleshooting do not always survive a plant manager's budget review. Third, cybersecurity concerns loom; opening up historically air-gapped systems to broader networks raises fears of ransomware attacks. Named figures in the piece reference the rise of the Industrial Internet of Things (IIoT) and edge computing as both a solution and a complicating factor. For example, integrating a modern predictive maintenance platform with a 1990s programmable logic controller (PLC) may require custom middleware that costs more than the PLC itself. **Analysis**: The real story goes beyond technology. The interoperability challenge is a human and economic one. Plant engineers are often rewarded for uptime, not data sharing. IT and operations technology (OT) teams remain siloed, speaking different languages. “No one gets fired for sticking with what works” remains the unofficial motto. Broader industry observers, such as the Industry IoT Consortium, argue that without standardised semantics—not just protocols—the Industry 4.0 vision remains fragmented. The push toward AI-driven manufacturing requires data liquidity, yet every new integration layer adds latency and points of failure. **Outlook**: The interoperability deadlock is beginning to crack, driven by two forces. First, cloud-based middleware as a service (MaaS) is lowering the cost of integration, offering subscription-based connectors for common equipment. Second, large original equipment manufacturers (OEMs) like Siemens and Rockwell Automation are embedding OPC UA as a native feature in new products. However, the installed base of legacy machines will take a generation to turnover. Expect a hybrid era: brownfield factories will adopt “interoperability wrappers” that translate proprietary protocols into open standards, while greenfield plants will standardise from day one. Policy may also play a role—the European Union’s Data Act mandates interoperability for industrial data, which could force slower adopters to act. For manufacturers, the question is no longer if interoperability is needed, but whether they can afford to keep putting it off.
Frequently Asked Questions
Interoperability is a tough sell because of high upfront costs to replace or adapt legacy equipment, unclear short-term return on investment, organizational silos between IT and OT teams, and cybersecurity fears when opening up traditionally isolated systems.
The main barriers include aging proprietary protocols, lack of standardized semantics, high integration costs for brownfield sites, resistance from plant engineers focused on uptime, and difficulty quantifying the business case for data sharing across systems.
Manufacturers can start by adopting middleware-as-a-service solutions, deploying OPC UA gateways for legacy equipment, creating cross-functional IT-OT teams, and prioritizing integration for high-impact processes like predictive maintenance and quality control.
Yes, interoperability is essential for Industry 4.0 because it enables real-time data exchange, AI-driven analytics, and coordinated automation. Without it, smart manufacturing initiatives remain isolated and fail to deliver promised productivity gains.
OPC UA (Open Platform Communications Unified Architecture) is a machine-to-machine communication protocol that provides a standardized way for different devices and software to exchange data securely. It is a key enabler for interoperability in modern factories.
Cybersecurity concerns often slow interoperability adoption because connecting legacy OT systems to IT networks expands the attack surface. Manufacturers must implement network segmentation, secure gateways, and regular patching, which adds complexity and cost.