Why are many companies still struggling to digitally network their production and benefit from the data?

The task of digitalization is to optimize existing workflows and establish new, efficient processes that were previously not technically feasible. The aim of all this is to make a company more efficient and equipped for future requirements. Ultimately, digitalization is a process that consists of many small projects and must involve many participants.

Digitalization projects relating to Industry 4.0, IIoT and AI depend on the networking of all assets, sensor technology and the integration of a wide range of data. Networking, often by retrofitting machines and systems, is a major initial hurdle that needs to be overcome. Again, it is of little use if only one department gets to work, as most topics are interdisciplinary - the entire company must therefore continue to develop. Employees from all departments involved should be involved.

What is changing as a result of digital transformation and IIoT?

The digital transformation affects all structures, right down to individual work processes or how activities are carried out, right down to the business model, which is adapting or even changing dramatically. To ensure the success of the transformation, it is therefore important to understand the dimensions of these technology issues from the outset and not to chronically underestimate them or avoid them out of fear. Many things go hand in hand; for example, a more innovative approach results in different project and working methods such as Scrum or DevOps, where hierarchies are eliminated and responsibility shifts to the cross-functional teams carrying out the work. At the same time, many positions, especially at management level, are changing significantly.

What are the typical problems associated with the introduction of these technologies?

In industry, this change often starts in research and development. However, a very technical view prevails there: People think in terms of devices and what data can be collected with them. However, it is actually about business goals and a vision for the future, and these must come from the management. Where do you want to be in five years' time? External service providers can provide support here and point out opportunities, but this direction is something that should come from within the company itself. However, this message and the understanding of the major changes that IIoT and AI will make possible have by no means reached all boardrooms. Clinging to the status quo, especially if you are currently quite successful, and the usual inertia still characterize many companies.

Why are an overarching strategy and the necessary expertise so important in the IoT environment?

IoT-related software has a deep impact on company processes. Without a clear goal, the implementation of individual projects is practically like flying blind. Particularly when it comes to new digital services and business models, advice is also required to provide information on the economic aspects when developing a vision. For example, are the costs of an idea in relation to the potential for monetization? Beyond these strategic considerations, companies are also facing a massive shortage of data analysts. Hardware and integration service providers must therefore also provide additional support for data sciences.

In discussions with networking experts, it becomes clear time and time again that the topic of retrofitting is like carnage in practice, and many things are extremely fragmented. How can it still succeed?

We have a dedicated team with years of experience in retrofitting and go directly to the production line to put the solutions into operation there. It is also important that hardware and software are optimally coordinated. Here we have an important advantage thanks to the close cooperation between software and hardware development within the Kontron Group. The main challenge is to maintain an overview, not to get bogged down and to choose the right measures at the right time: In broader IoT concepts, there are usually many construction sites. Clean management is particularly important because many different people are often involved in the project.