Focus on App-based Automation

Meinrad Happacher,

Marketplace as a Service

For three years, the start-up Flecs has been active in the industrial automation market. The company’s vision is to automate the installation and updating of industrial apps - ideally following an as-a-service model. Patric Scholz, co-founder, outlines the strategy.

Patric Scholz, Flecs: »We believe in the software-defined business model in industrial automation!« © Flecs

Mr. Scholz, what is the core idea behind your vision?

Patric Scholz: In recent years, the automation industry has transformed significantly. Standardized CPUs and Linux-based operating systems have become increasingly prevalent, changing how companies in industrial automation develop and offer their products. The central question now is: how can these new technologies be integrated into a sustainable business model? And that’s where we come in.

How so?

We believe software is the driver of this change. Software that runs on these platforms and provides users with clear added value. The question many automation professionals ask is: what business model fits this software, and how can these products be best delivered to customers? Other key aspects include providing updates and streamlining transaction processes.

Why should automation professionals choose Flecs?

I would argue that, with us, companies can implement new business models in weeks instead of years. Many machine builders, system integrators, PLC manufacturers, and IPC manufacturers still rely heavily on traditional sales structures focused on one-time sales of hardware products or extensive system solutions. We suggest that companies, in addition to their existing models, adopt a "Marketplace as a Service" approach, which we offer to the industry through a flexible platform model. A major advantage: instead of investing in lengthy internal development, companies can establish direct online sales through the marketplace within six weeks - a drastic difference from the up to two years an internal development could take.

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So, does Flecs maintain direct customer contact in this setup?

This is a common concern for many companies. Unlike consumer market platforms, we take a different approach: we don’t interfere with customer communication, leaving companies full control over their customer interactions. Early experiences show that communication through the Flecs platform can even lead to better and, importantly, lasting customer relationships.

Does the marketplace offer any other advantages?

Another advantage of the marketplace model is the ability to select and use standard apps directly from the Flecs marketplace. The marketplace now offers over 50 standard apps ready for immediate use. Through white-labeling, these apps can be filtered and preselected to better meet customers' specific requirements. This allows companies to expand and customize their automation solutions more quickly. We also offer a device onboarding service that enables quick and efficient commissioning of new devices or machines. Configurations are predefined and automatically installed when the machine is started, significantly reducing the effort required to commission new systems and increasing flexibility.

Flecs at the SPS 2024: Hall 6, Stand 240

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