The IT/OT Insider Podcast with David and Willem
(Our topic, Our tone, Sponsored by Litmus.io [https://litmus.io] *) Two years ago, roughly every second booth at Hannover Messe had the word “AI” on it. This year the tone has shifted. Less about the layer you buy, more about the outcome you’re trying to deliver. That shift is what Vatsal Shah [https://www.linkedin.com/in/vatsal12/], co-founder and CEO of Litmus [https://litmus.io], came on the podcast to unpack. It’s also the first time he’d talked publicly about how Litmus rethought its own strategy around this idea. Coming from the CEO of one of the more established industrial data platforms, that’s worth paying attention to. (If Litmus is new to you, we covered them earlier with COO John Younes in our Industrial DataOps series [https://itotinsider.substack.com/p/industrial-dataops-5-with-litmus], and wrote about their approach to consolidation in Fighting Entropy [https://itotinsider.substack.com/p/fighting-entropy-how-to-scale-with-litmus].) The $1 trillion question nobody’s asking Here’s the observation that reframed Litmus’ entire 2025 strategy. “If you look at the manufacturing software market, it’s what, like $15 billion? How much is the manufacturing labour market? A trillion dollars plus. It’s a hundred times the software market.” — Vatsal Shah Vatsal’s numbers, not ours, but the ratio is what matters. Every industrial data vendor has been fighting for a share of that small software pie. Meanwhile the vastly bigger prize sits behind a wall we’ve barely tried to cross. To be clear: this isn’t about replacing labour. “In no shape or form can AI replace human workers right now,” Vatsal said, and we agree. We’d add something we’ve argued for a while: in most manufacturing environments today, the constraint isn’t too many operators, it’s not finding enough skilled ones. So the question isn’t “how do we cut headcount?” It’s “how do we make the people we have more effective?” Thanks for reading The IT/OT Insider! Subscribe for free to receive new posts and support our work. The Industrial Data Catalog: an old idea, new to the plant floor You can’t get to outcomes without the plumbing. Ask a CIO how many databases they run and you’ll get an answer. Ask a plant leader how many PLCs, which historian versions, which SCADA systems — and past fifty sites, the honest answer is often I don’t know. Data catalogs are a well-worn concept in IT. Vatsal’s claim is that Litmus is the first to bring one to the operational side: every data logger, historian, database, CNC machine — listed on a single interface, for humans on compliance duty and for AI agents as a source of context. Without the catalog, an LLM answering questions on top of plant data was landing at around 85% accuracy in Vatsal’s internal tests. With the catalog providing metadata and context, it jumped to roughly 97%. We haven’t independently benchmarked those figures, but the direction is what everyone building agents on industrial data will run into: garbage in, garbage out — and “garbage” here mostly means no context. The most concrete example in the conversation came from pharma. A C-level exec, asked what burns his people out, named documentation — batch changes, recipe adjustments, quality fixes, all audit-critical, all soul-destroying. Offer them an agent that generates auditor-ready documentation from the underlying data continuously, and the response is “shut up and take my money.” Vatsal was honest about the follow-up: the agent doesn’t yet work to the 30–40% quality bar it needs, because the data, context and integration aren’t there yet. That’s the case for putting the foundation right. Rush the agent, and you’ve got another disappointed pilot. You can check the catalog offering here: litmus.io/litmus-data-catalog [https://litmus.io/litmus-data-catalog]. Stop buying tools. Start buying outcomes. Roughly halfway through, we asked the crystal-ball question: what should the industry actually do next? Vatsal’s answer was refreshingly non-vendor-y for someone running a leading platform: “I’m CEO of one of the leading data technology companies out there, but even I’m thinking we need to get out of platform mindset and start thinking outcomes mindset.” His three non-negotiable foundations: * Own your data. Edge or cloud, but you own it. Don’t hand it back to OEMs. * Document your processes in a way both the next generation of engineers and AI agents can consume. * Cybersecurity. A resilient perimeter isn’t optional. Everything else — the agents, the LLMs, the specific tools — sits on top. This is where most manufacturers go sideways, buying point solutions the way they’ve been buying pumps and valves for fifty years. It’s the same argument for a platformed approach we’ve made elsewhere on scaling [https://itotinsider.com/operational-data-platform/]: without it, you don’t get repeatable value, and adding people or systems slows you down instead of speeding you up. Vatsal turns the tables: how close is IT/OT convergence? Halfway through, Vatsal flipped the script and asked David a question (a genuinely good one 😀): “How close are we to real IT/OT convergence?” Short answer: technically closer than we’ve ever been, organisationally still a long way off. Technical convergence is happening almost everywhere — cloud, containers, DataOps, AI on top. The operational data platform is the layer where IT and OT actually meet. The organisational side is where the speed gets lost. Without collaborative ways of working, no amount of technical convergence delivers the pace the business wants. The lessons from The Phoenix Project [https://itotinsider.substack.com/p/our-mini-itot-book-library-v2] aren’t a one-to-one match with IT/OT, but they’re close enough that they transfer. The pattern Vatsal described — pulling motivated talent from IT and OT into a single Industry 4.0 or Data Transformation team — is one we’ve seen work. It’s also one we’ve flagged with a warning in our upcoming book [http://itotbook.com]: if you’re not careful, that team becomes a third silo. Great internally, disconnected from the plants it’s meant to serve. There are ways around it, but it takes intent. Vatsal’s closing line on this was, we think, exactly right: in a world where every technology is evolving rapidly, adaptability matters more than any specific choice — and that means building a culture where mistakes are treated as learning, not as career-ending events. Final thoughts First: the shift from platform to outcome is genuinely happening — and it’s now coming from platform vendors themselves, not just analysts. That’s a healthier signal than another wave of AI-branded booths. Second: the foundation still matters. Vatsal isn’t saying “skip the platform.” He’s saying stop selling it as if it were the point. The platform is what makes the outcome affordable, repeatable, and scalable. Skip the foundation and the agents don’t work. Skip the outcome and the foundation looks like cost. Own your data. Document your processes. Get the perimeter right. Then figure out which 10% of somebody’s day you can genuinely give them back. Stay Tuned for More! 🙋 Join the [https://itot.academy]ITOT.Academy [https://itot.academy] (new cohort in September) → [https://itot.academy]📘 Pre-order the [https://itotbook.com/]IT/OT Handbook [https://itotbook.com/] (+ claim the bonuses!) → [https://itotbook.com/] Subscribe to our podcast and blog to stay updated on the latest trends in Industrial Data, AI, and IT/OT convergence. 🚀 See you in the next episode! Youtube: https://www.youtube.com/@TheITOTInsider [https://www.youtube.com/@TheITOTInsider] Apple Podcasts: Spotify Podcasts: Disclaimer: The views and opinions expressed in this interview are those of the interviewee and do not necessarily reflect the official policy or position of The IT/OT Insider. This content is provided for informational purposes only and should not be seen as an endorsement by The IT/OT Insider of any products, services, or strategies discussed. We encourage our readers and listeners to consider the information presented and make their own informed decisions. (*) At the IT/OT Insider we do value our independence and transparency. So as we look for ways to pay the bills we were looking for ways to work with sponsors without giving up on those principles. This is where the idea of sponsors comes from. Together with a few selected sponsors we’ll explore some topics that we both find interesting in the same way we write our normal articles. In the coming weeks you’ll find a couple of pieces that have been sponsored. Feel free to contact us if you are interested in a partnership as well. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit itotinsider.substack.com [https://itotinsider.substack.com?utm_medium=podcast&utm_campaign=CTA_1]
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