CGI’s René Lykkeskov, Vice President for Pharma, Utilities, Life & Food Sciences, and Phillip Malcho, Director Consulting Services, warn that aging OT systems (technology that controls production equipment and processes) could cost the pharmaceutical industry billions in breakdowns and security breaches–and emphasize that only a gradual migration to modern platforms can pave the way for AI and safeguard competitiveness.
Denmark has one of its largest “golden eggs” in the pharmaceutical and life sciences industry. Here, production lines run around the clock, delivering life-saving medicines to the world—while contributing massively to the Danish economy through growth, jobs, and trade surpluses.
The most visible threats to Danish pharma are easy to identify: Global competitors with enormous resources, political shifts in the world’s largest drug market, and the constant pressure from generic products that challenge even the strongest blockbuster drugs.
But alongside these familiar external battles lurks a quieter, internal threat: many companies still depend on outdated Operational Technology (OT) systems. These systems have provided reliability for decades, but time is running out. The risks are clear—breakdowns, security vulnerabilities, and a lack of flexibility that prevent integration with newer digital opportunities.
In an industry where stagnation is not an option, outdated systems can become the weakest link in an otherwise powerful chain, explains Phillip Malcho, Director of Consulting Services at CGI Denmark—a company that for decades has delivered and maintained the OT systems that much of today’s pharma and life sciences production is built on.
“It gets very expensive very quickly if these companies stand still and the production lines stop. So, when we talk about aging OT systems, it’s not just a technical detail—it’s a business-critical issue,” says Phillip Malcho.
OT systems with potential security gaps
One major issue is security. The old OT systems were originally isolated, but when they are now connected to modern cloud-based solutions such as MES and ERP, new risks arise. Older systems don’t integrate optimally with new digital platforms, and this creates potential security issues within the integration.
“When system integrations leave gaps, it means a skilled hacker could, in principle, control the entire factory. Companies could find themselves in a very vulnerable position,” warns Malcho.
Even a few hours of downtime can cost the pharmaceutical industry billions—which is why aging systems are a threat that cannot be ignored, points out Phillip Malcho.
In an industry where supply reliability is essential, that’s a risk companies can’t ignore. Even a few hours of downtime can cost pharma firms billions—through wasted raw materials, delayed deliveries, and lost revenue. They also risk losing valuable days of their patent period, where every single batch counts towards full utilization of patent rights. “You can’t just place an AI model on top of an OT system from the 1980s and expect results,” says René Lykkeskov.
A central part of companies’ digitalization strategies is therefore the replacement of outdated OT systems.
Digitalization must be introduced gradually
The problem of aging systems is not unique to Denmark. According to CGI’s global Voice of Our Clients 2025 study, nearly half of the more than 1,800 surveyed C-level executives point to legacy systems as one of the biggest barriers to successful digital transformation.
The trend cuts across industries, but it’s especially critical in life sciences, where production is so capital-intensive that every minute of downtime costs dearly. According to Larsen, Technology Director at ABB Denmark, the challenge is recognized. ABB operates globally at the intersection of industry, energy, and technology. Larsen emphasizes that modernization is not just about technology, but how it’s implemented. “Digitalization must be introduced in small steps,” he says.
That means implementing digital solutions in ways that minimize major disruptions and reduce the risk of long production shutdowns. he key is to build a bridge between old and new—maintaining the reliability of legacy systems while gradually introducing new platforms, under a running production environment. This way, companies avoid betting billions on one single risky transition.
As Larsen notes, this is often the only practical way to make progress without endangering supply security—especially in an industry where patents and global competition impose relentless time pressure.
CGI’s data confirms the conclusion: industry leaders know legacy systems are a barrier, but they also know progress must come through evolution, not revolution. The industry’s continuity and competitiveness depend on carefully balancing those two forces.
Incremental migration enables new AI capabilities
While some advocate for tearing down old systems and starting from scratch, CGI promotes a more pragmatic approach: incremental migration. Here, old and new OT systems run side by side for a period until it’s safe to switch fully to a modern, future-proof setup. This prevents critical shutdowns and ensures uninterrupted production.
“You can’t just put an AI model on top of an OT system from the 1980s and expect results,” explains René Lykkeskov, Vice President for Pharma, Utilities, Life & Food Sciences at CGI Denmark.
According to René Lykkeskov, progress in the Pharma industry requires incremental modernization, where old and new systems run simultaneously, securing a seamless transition.
“It requires a step-by-step transition, where we gradually move functionality to modern platforms, while the factory is still producing.”
This approach requires patience and precision. Every production process must be mapped, analyzed, and tested in both the old and new environments before switching over. That’s why CGI insists on combining deep technical expertise with operational knowledge from those who know the factory best.
“It’s about bridging the old and the new: maintaining the operational reliability that the old systems still provide, while gradually introducing new platforms,” says Per Larsen, Technology Director at ABB Denmark.
“For these transitions, I don’t just need people in suits from headquarters—I need those with oil on their hands, who know the facility inside and out. Without them, you’ll never reach the finish line,” says René Lykkeskov about the complex but vital migration process.
The human factor and enormous gains
The challenge isn’t only technological—it’s also about people. Many specialists with in-depth knowledge of these older OT systems are nearing retirement. “There’s no younger generation ready to take over,” says Phillip Malcho.
That’s why CGI runs a graduate program where younger employees work side by side with veteran technicians who implemented the OT systems back in the 1980s and ’90s. The program ensures that critical knowledge isn’t lost while building new skills for the future.
The potential gains from modernization are enormous. With digital twins, companies can test changes virtually before implementing them in production. And through predictive maintenance—repairing equipment before it breaks, based on data insights—even small vibrations in a motor can warn of failure, preventing costly downtime. “That can save a lot of money, and planned maintenance stops are far cheaper than unexpected breakdowns,” explains Lykkeskov.
CGI’s experience shows that combining process understanding, respect for existing systems, and gradual modernization delivers results. It allows companies to bridge the gap from the OT systems of the past to the digital opportunities of the future—without jeopardizing Denmark’s life sciences production.
Contact us to learn more about how CGI helps the pharma and life sciences industries modernize aging OT systems without disrupting production.
This article was produced by Børsen Brands in collaboration with CGI and originally published here in Danish, October 2025.
