The Risks of Improper Software Management

March 17, 2025
Many engineers and operators are unaware of who owns or manages the programs that run their automation systems.

One of the most overlooked, yet critical, challenges facing industrial operators is the lack of proper software management. This can be an obscure issue until a system fails, leaving manufacturers to discover that they lack access to the necessary software to diagnose and resolve issues. 

A recent real-life example highlights this issue: A mid-sized automotive industry manufacturer  experienced a system failure but was unaware that specific software was required to clear faults to gain visibility into the system’s status. Without access to the program, troubleshooting was  impossible. The company ultimately had to purchase a new copy before our engineers could  proceed with diagnostics and repairs, leading to unnecessary downtime.

Not having proper storage solutions can lead to a range of risks and consequences. Below, I detail the major risks and consequences of failing to establish a structured system of software ownership  and accessibility.

1. Data loss and corruption 

  • Risk: Without reliable storage, critical system data — including production logs, sensor  readings and configurations — can be lost or corrupted due to inadequate backup  systems.
  • Consequence: This can disrupt operations, delay production and result in irretrievable  data loss. In some cases, companies may lose valuable operational insights necessary  for process optimization and compliance reporting. 

2. Loss of programs 

  • Risk: If the program running on, say, a PLC, HMI or VFD is lost due to hardware failure or  power loss, system recovery can be extremely difficult. 
  • Consequence: Without backup, companies may need to rebuild programs from  scratch, leading to extended downtime and costly redevelopment efforts. 

3. Reduced operational efficiency 

  • Risk: If storage solutions are fragmented or disorganized, engineers and operators  struggle to retrieve necessary programs quickly.
  • Consequence: Delays in accessing essential software slow down decision-making,  increase troubleshooting time, and ultimately decrease productivity and profitability.

4. Security vulnerabilities 

  • Risk: Storing programs on unsecured systems increases exposure to cyber threats,  including ransomware and unauthorized access.
  • Consequence: A cybersecurity incident can result in operational sabotage, data  breaches, intellectual property theft, regulatory penalties and reputational damage. 

5. Lack of compliance 

  • Risk: Many industrial sectors are subject to strict data retention and security  regulations.
  • Consequence: Failing to store software according to compliance standards can lead to  legal penalties, loss of certifications and damage to customer trust. 

6. Limited scalability 

  • Risk: Older or inadequate software storage solutions often do not scale with evolving  operational needs. 
  • Consequence: Companies may struggle to integrate new technologies, such as IoT- enabled devices and predictive maintenance, ultimately falling behind competitors that  are more technologically advanced. 

7. Inconsistent data availability 

  • Risk: Poor software storage management can lead to inconsistencies in data access  across departments or systems. 
  • Consequence: This misalignment can cause production delays, inventory issues and  even safety risks due to lack of real-time visibility into system operations. 

8. Inability to leverage advanced analytics 

  • Risk: Without centralized and well-managed software storage, companies cannot fully  utilize data analytics and AI-driven insights. 
  • Consequence: This limits opportunities for process optimization, predictive  maintenance and cost reduction, putting companies at a competitive disadvantage. 

9. High operational costs 

  • Risk: Inefficient software storage solutions often lead to excessive maintenance and  replacement costs. 
  • Consequence: Companies may waste valuable resources on unnecessary software  purchases and reconfigurations instead of investing in strategic growth initiatives. 

10. Poor disaster recovery and business continuity 

  • Risk: Without a robust backup system, software may be lost permanently due to  hardware failures, cyber incidents or natural disasters.
  • Consequence: The inability to recover quickly from disruption can result in prolonged  downtime and significant financial losses. 

11. Collaboration and data sharing difficulties 

  • Risk: Lack of centralized software storage can hinder interdepartmental collaboration  and information sharing. 
  • Consequence: This can lead to inefficiencies, duplicated efforts, and errors in  manufacturing and processing. 

12. Loss of competitive advantage 

  • Risk: Companies that fail to manage their software assets effectively struggle to adopt  new technologies and remain competitive. 
  • Consequence: More technologically advanced competitors will outperform them,  taking market share and increasing industry pressure to modernize. 

Risk prevention strategies

To prevent these risks, companies must implement a structured software and program  management system that ensures:

  • Centralized storage – A secure, organized and easily accessible location for essential  software, reducing mismanagement or loss.
  • Defined ownership – Clear responsibility assigned to specific personnel or departments  for managing and updating software. 
  • Regular backups – Automated backups to prevent data loss from hardware failures or  cyber incidents. 
  • Program backups – Maintain well-documented copies of all control programs, ensuring  rapid recovery in case of system failure. 
  • Access control with security – Restricted software access for authorized personnel and  enforcement of cybersecurity best practices. 
  • Compliance monitoring – Routine audits to ensure storage aligns with industry  regulations, reducing legal and operational risk. 
  • Scalability plan – Storage solutions that grow with business needs and integrate with  future technologies for long-term efficiency.

Software management is misson critical

The case of the automotive manufacturer noted above is not unique – it represents a widespread  industry issue. Companies must recognize that software management is not a secondary concern  but a mission-critical function. By taking proactive steps to centralize, secure, and manage  software assets effectively, industrial operators can safeguard their operations against downtime,  inefficiencies and security threats while maintaining a competitive edge. 

At GTH, we bring deep expertise in software and system integration to help businesses optimize  their storage solutions. Whether you’re upgrading legacy systems, integrating new automation  software or planning better storage efficiency, GTH can provide the technical proficiency and  support necessary for long-term success. Our ability to create and refine software solutions  ensures that your storage infrastructure is not only reliable but also scalable and future ready. 

Gotzon Mugica is lead control system engineer II at George T. Hall Company, a certified member of the Control System Integrators Association (CSIA). For more information about George T. Hall Company, visit its profile on the CSIA Industrial Automation Exchange

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