The System Control Fair is the only trade fair for factory automation in Japan and covers a similar product range to SPS IPC Drives in Nuremberg. With around 260 exhibitors, the SCF is considerably smaller than SPS IPC Drives (1668 exhibitors). However, with over 49,000 visitors, the distance between the three-day event and the visitor benchmark of SPS IPC Drives with 64,000 visitors is no longer that great.

The robot trade fair iREX represents a completely different order of magnitude: There were "only" 446 exhibitors there. But a total of over 120,000 visitors squeezed through the two exhibition halls over the three days of the fair.

What was striking at both trade fairs was that the terms Industry 4.0 and Industrial IoT were omnipresent. Computer & AUTOMATION wanted to know from two industry experts how the topic of Industry 4.0 is being approached at the SCF, but also in Japan in general: Shinichiro Kai, Research Director at ARC Advisory Group and Armin Pühringer, Business Development Manager at Hilscher. Read the two interviews on the following pages.

Interview with Armin Pühringer: "The premise: Expand carefully!"

Armin Pühringer: "Nobody in Japan is talking about disruptive business models yet!"

© Hilscher

Mr. Pühringer, you were at the two Japanese trade fairs SCF and iREX in December: How do the exhibitors there present themselves in comparison to German trade fairs?
Pühringer: In terms of the key elements at a trade fair, such as the technology presented, appearance and representation of the company, the SCF is comparable to German automation trade fairs. However, the companies are more technically oriented in the presentation of the stand and stand out due to their attention to technical information and details.

The words IoT and IIoT were omnipresent at both trade fairs. Even 'Industry 4.0' was frequently to be seen. Your impression: How are the Japanese approaching the topic?
With a few exceptions, there were no truly revolutionary innovations to be seen. It was up to the major automation suppliers to show how existing control architectures are being expanded with new concepts. Mitsubishi Electric's eFactory stands out in this respect. It is true that the terms Industry 4.0 and Industrial IoT were used for the trade fair presentation. However, it seems to me that the overall strategy of the companies is to expand existing platforms with cautious steps: from production technology into the IT world.

... so a little different from here in Germany and the USA?
Yes, I would say that in the USA it's mainly the IT industry that is driving the issue, whereas we in Germany are probably taking the most balanced approach. And the Japanese are trying to carefully supplement production technology - i.e. OT - with the IT approach.

What specifically do you base this statement on for Japan?
The cloud and the internet with its applications do not have the same appeal in Japan as in the western hemisphere. Cloud-based architectures seem to be a goal, but not the door opener to Industrial IoT; the topics of security and data protection are almost not represented; the IT technologies for Industrial IoT are mainly driven by the corresponding business areas of the large automation companies. Conclusion: The word 'disruptive' is not used at all in Japan in connection with the transformation of OT and IT.

But isn't there a Japanese Industry 4.0 initiative called the Industrial Value Chain Initiative, or IVI for short, similar to the Industry 4.0 platform in Germany?
Yes, this initiative exists alongside other organizations. The IVI has begun to take the first step towards designing a Japanese version, or perhaps better a counter-design to the 'German' Industry 4.0 initiative, in order to connect companies and business processes via the Internet. One focus of the IVI is on creating structures that also connect small and medium-sized companies. However, there was hardly anything to be seen of the IVI at the SCF.

So the Japanese are still pretty inactive?
They are approaching the topic differently. They are currently focusing more on cooperation between companies. One example is the announcement by CLPA and Profibus International, which wants to create a transparent network infrastructure between CC-Link IE and Profinet. It is important to bear in mind that these activities are supported by Mitsubishi Electric and Siemens. The same applies to the robotics industry: Cisco and Fanuc are now working together to develop 'Comprehensive Network Security at every Step'. I would say that the Japanese see increased cooperation as the order of the day when it comes to new business models through Industry 4.0.

What opportunities do you see for German companies to get involved in developments in Japan?
Japanese industry is comparing the concepts that are being developed and implemented in the USA, Germany and other countries. This discovery phase will be based on the strategies of Japanese companies. This will result in a Japanese approach to Industrial IoT that focuses on expanding production technology - OT for short - to include information technology - IT for short. The concepts and solutions for Industry 4.0 implemented by German industry are highly regarded in Japan, so the prospects for German companies in Japan are good.

Interview with Shinichiro Kai: "The role of Mitsubishi"

Shinichiro Kai: "The Japanese don't want to be pioneers or latecomers!"

© ARC Advisory Group

Mr. Kai, how are Japanese companies generally approaching the topics of 'Industrial Internet of Things' and 'Industry 4.0'?
Kai: I would say the best way to describe it at the moment is to describe it as a wait-and-see learning and testing phase. Companies are waiting for standards and convincing use cases from the global market before they actually start investing. However, the government's decision to support the development of IIoT is providing some tailwind. The Japanese government established two initiatives last year: The Robot Revolution Initiative, which now involves 219 companies, 96 universities and industrial organizations and ten research institutes, and the 'IIoT Acceleration Consortium', which already has 1583 members as of January 18.

Why are Japanese companies taking a hesitant approach to the topic?
The hype that was triggered 20 years ago with the term M2M - machine-to-machine communication - is still having an effect. Ultimately, M2M in the factory sector did not fulfill the expectations of that time. What's more, it took a while for companies to work out the differences between IIoT and M2M and to correctly classify the meaning of terms such as 'digital twin' or 'cyber physical systems'. And in general, it has to be said that Japanese companies neither want to be pioneers nor latecomers. That's why they are waiting to see where the real issues arise for them and then react in a focused manner.

How do you assess Mitsubishi's IIoT and Industry 4.0 activities?
In the past, the focus of Mitsubishi's Factory Automation Group was on the components business. Only eFactory and the CC-Link communication family have turned Mitsubishi's range of devices into a horizontally and vertically integrated solution. What the solution still lacks, however, are application stacks at MES level and for higher-level management tasks. It is not without reason that Mitsubishi attaches great importance to the e-Factory Alliance, consisting of partner companies. From the perspective of comprehensive integration of the automation and management systems of an IIoT era, however, Mitsubishi certainly still has some work to do: above all, operational technology - OT for short - must be merged with high-performance IT.

How would you compare Mitsubishi's strategy with the strategies of Rockwell Automation and Siemens?
As just mentioned, Mitsubishi will have to strengthen its MES and MOM-level software in the near future through acquisitions or alliances with major IT companies in order to compete with Siemens and Rockwell Automation in the field of IIoT.