Internet of Things / IoT

Meinrad Happacher, Lukas Dehling | Lukas Dehling,

Where Industry 4.0 is still lagging behind

IIoT and Industry 4.0 are set to revolutionize value creation and business processes. However, Klaus-Dieter Walter and Dr. Hans Egermeier are certain that a lot still needs to happen in companies in order to benefit from this.

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Klaus-Dieter Walter, Member of the Management Board at SSV Software Systems: "Process steps are important in order to convert raw data into valuable information."

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Mr. Walter, to what extent are companies actually prepared for the changes today?

Klaus-Dieter Walter: I still see a considerable need for action. Many companies classify the IIoT and Industry 4.0 as a connectivity topic that can be handled effectively with the help of MQTT, OPC UA and perhaps an administration shell. However, it is actually about data, information and knowledge. This is completely new territory for many companies. A 'sensor-to-cloud' solution is not the only way to get there. After a while, companies have a lot of data in the cloud or on a company server, but there is no quantifiable benefit.

We are currently seeing countless companies looking into this topic. Some are initially building a prototype or demonstrator that collects machine and plant data. In some cases, this data is then visualized with the help of a newly developed app or by other means. However, this is not nearly enough to remain competitive in a digital world.

What technical issues need to be considered?

Walter: In addition to connectivity, we all have to deal with the overarching topic of artificial intelligence. This includes the sub-areas of 'machine learning' and 'neural networks', but also classic statistical methods such as 'explorative data analysis'. Algorithm development and IIoT security also play a key role.

Are all the technical requirements already in place?

Walter: From a purely objective point of view, I think the technical requirements are in place - nothing essential is missing. Nevertheless, due to the intense competition on the supplier side and the resulting marketing activities, we have to prepare ourselves for further developments. However, some things will only be transferred from other areas to the Industry 4.0 world, for example the topic of 'data science'. In addition, we are lagging far behind in the EU when it comes to cloud acceptance. The legal framework conditions are even worse.

What is the difference in approach compared to projects in the past?

Walter: For most companies, the challenges posed by IIoT and Industry 4.0 are unlikely to be met by typical incremental product innovation. In this case, it is already very difficult to determine the object of innovation in the first place. In many cases, for example, a mix of product and business model innovation is required. In this respect, it is not enough to simply set up another project in product management. It is very important to realize that we are dealing with data and information-based innovations. In some cases, it will even be necessary to tap into external start-ups in order to be successful.

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Dr. Hans Egermeier, Managing Director of Talsen Team, advises companies: "Just do it!"

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Dr. Egermeier, are the internal company structures already suitable for the emerging IIoT world?

Dr. Hans Egermeier: Cross-functional and cross-divisional teams with a high proportion of expertise in software-related topics are needed. It is of course very difficult to give a general answer as to whether the structures are already suitable for this. The management of progressive companies will probably roll their eyes inwardly and be puzzled as to why they are still not considered to have software expertise. Companies that are at the very beginning of the IIoT world, on the other hand, may not even realize that their current structures are only suitable for electromechanical developments with a small software component at best.

How should the development teams be organized?

Egermeier: Above all, they need to be organized in terms of a high information throughput. In other words, no rigid top-down hierarchies, a high degree of autonomous decision-making authority and responsibility within the team and a consistent focus on customer needs - not on requirements catalogs that we have devised ourselves.

Which new methodologies are suitable?

Egermeier: Agile development methods, such as the best-known process framework 'Scrum'. During implementation, it is important not to allow the rules to be relaxed. To ensure quality standards, test-driven development with as much automated testing as possible is essential.

How can a company implement these requirements?

Egermeier: The simple answer to this question is: "do it!" Far too many companies spend far too long thinking about how they can optimize their processes without changing even a little. Anyone who introduces 'Scrum' as a process, for example, also introduces continuous learning and improvement strategies that, when implemented consistently, help to overcome the initial difficulties and quickly bring the teams to a high level of effectiveness and efficiency.

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