Mr. Müller, you have been involved in IIoT sales since 2006. What was your basic motivation for tackling the topic back then?

At that time, we at Exor were very euphoric about it - even if we were still using the acronyms M2M and Remote Service. We had a business model for a virtual power plant with which we could earn a lot of money in 2006. And so we were optimistic that we would be able to realize further applications that were just as lucrative. We were sure that everyone would want something like this in a few years' time. And the technology was there and it worked. What could possibly go wrong? I went 'all in' with Exor back then and threw myself fully into this topic - unfortunately with moderate success. There were then many other projects, but none of them ever scaled.

How would you rate the topic today in terms of business success for automation providers?

Homeopathically! I don't know of anyone who has achieved any significant success that lives up to the IoT claim. Across the industry, we assumed six-figure achievable quantities. Many companies have invested huge sums in the technology: Siemens in Mindshere, Samsung in Artik Cloud, Conrad Electronic in its IoT offering, Beck-IPC and HMS in the Kolibri portal. However, exponential growth has so far failed to materialize for all of them.

What obstacles to commercial success do you see?

For a long time, I thought it was because the technology was too complex. But it's not the technology: we simply still think in linear terms, i.e. like in the 90s: taking a shower without getting wet is and remains difficult! Let's be honest: much of what we propagate today under IoT is old wine in new bottles - we are usually miles away from 'new disruptive approaches'. What's more, the added value of existing IoT solutions, especially in factory automation, is generally not high enough to attract sufficient attention at decision-maker level. Who needs IoT in their factory when everything is running smoothly and sales and profits are increasing? How often does a motor on a machine really fail unexpectedly?

How could automation companies approach the topic in a more promising way?

I think the key to success lies in convergent technologies. Just as Apple shook up a wide range of industries with the iPhone, it will be virtual approaches in automation that pave the way for the IoT in the future. Take the latest example of the virtual PLC: newcomers such as Logiccloud, but also the top dog Siemens, are now implementing the PLC in the cloud. In other words, the controller merges with other technologies in the cloud and also replaces a lot of hardware in the field. This releases enormous rationalization potential in hardware, but also in terms of maintenance, and therefore has an enormously disruptive effect. IIoT technology is participating as a free rider.

The IIoT is therefore not dead, but is merely going through a disillusionment phase after the initial hype. But one thing must also be clear to us: Customers are not just looking for a gateway and a fancy dashboard, they need a partner who can help them from the sensor to the implementation of the business model, or who can also support them in the development of business model innovations.