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.
