Industrial Tech: What is it and how are start-ups driving Industry 4.0 forward?

Industrial production is currently undergoing a transformation that is more profound than ever before. Developments in the areas of automation, artificial intelligence, IoT and robotics are revolutionizing not only individual manufacturing processes, but entire value chains and industries. This opens up unique opportunities for companies that have been established on the market for years and decades, but has also given rise to many young, exciting start-ups in the so-called “Industrial Tech” sector. They are becoming increasingly important as innovators and cooperation partners. In this article, we would like to provide you with comprehensive insights into the industrial tech sector and present current examples of cooperation.

Definition: Industrial Tech – What is it?

Change always comes with challenges, not only from a technological and financial perspective, but also from a human one. For decision-makers in established companies, it can be difficult to see which technology really represents a sustainable, practicable solution for their own factories. Especially in larger companies, there is often more than one opinion on this, so that steps towards innovation must first be negotiated internally at various levels. Once a solution has been found, people are needed who are willing to try out new things, learn and redesign their work processes in their day-to-day work. All of this requires time, money and, above all, determination. If innovations in the field of industrial tech are relevant to your company or industry, you should take the following challenges into account at an early stage:

• Investment costs

The implementation of new technologies requires financial resources that sometimes do not pay for themselves immediately. You may have to rely on banks and investors. Find out about leasing options if necessary.

• Technological complexity

The integration of industrial tech into existing production and IT systems can be challenging or straightforward, depending on the provider. Check exactly which technologies and partners you are relying on.

• Skills shortage

The use of new technologies often requires people who are willing and able to deal with them. When planning your project, you should consider the possibility of training your staff or acquiring new employees at home or abroad. One alternative is robotics solutions, which can specifically counteract the shortage of skilled workers and even mean that trained personnel are no longer required for certain work steps.

• Cybersecurity and data protection

Reports of cyber attacks have been increasing in recent years. Despite all the advantages offered by the digitalization and networking of processes, this also makes companies vulnerable. Even small and medium-sized companies can be affected. It is therefore essential to obtain expertise in this area too.

• Regulatory requirements

New technologies must comply with legal requirements. Particularly if you choose solutions that come from abroad, you should therefore find out in good time what you need to consider and what additional costs you will incur as a result.

Opportunities for established companies

At the same time, new technologies in the field of industrial tech also bring new opportunities. For us in Europe in particular, they offer a chance to use advanced and sustainable technical solutions to assert ourselves against companies that gain advantages through dumping wages in developing and emerging countries. In the long term, it is worth retooling factories and production facilities with the help of industrial tech, because there are also many opportunities:

• Increasing efficiency

The use of robotics, AI and IoT can significantly optimize production processes. Although there are initial investment costs, you are very likely to save money in the long term. At best, you can also increase the quality of your products and avoid scrap costs.

• New business models

There are no limits to your ideas. Industrial tech suddenly makes business models possible that were unthinkable just a few years ago. This also gives established companies the opportunity to develop further or even reinvent themselves.

• Sustainability and resource conservation

Fires, floods and extreme weather conditions are already showing that we cannot ignore the challenges of climate change. Industrial tech solutions can make a significant contribution to greater environmental and climate protection and help companies to comply with the relevant legal requirements.

• Flexibility and resilience

The more networked and innovative you are, the faster you can react when your company or industry is affected by far-reaching changes. Rely on solutions that give you speed and flexibility, e.g. in the energy sector or when adapting and scaling your production processes.

• Improved data analysis and decision-making

Big data is also one of the most important buzzwords in the context of industrial tech. Innovative technologies are generally highly data-driven. This gives you the opportunity to identify your own processes and, above all, weak points and improve them accordingly.

Cooperation with start-ups as the key to innovation

Established companies should not view start-ups primarily as competitors, but above all as potential partners on the path to innovative solutions. Cooperation with industrial tech startups not only offers the opportunity to compensate for a possible backlog, but is above all a strategic decision to remain competitive in a rapidly changing market.

Through targeted collaborations with perfectly suited start-ups, you can benefit from the innovative strength, flexibility and speed of start-ups instead of literally “reinventing the wheel yourself”. This often pays off financially. In addition, working with industrial tech start-ups offers a unique opportunity to exchange knowledge, develop innovative products and create environmentally friendly, resource-saving production methods.

If you need external support in this process, startup experts and scouts can help you to identify competent and suitable partners from the startup scene and initiate cooperation.

Cooperation Examples

Did you know that many corporations have their own startup programs that help them stay at the cutting edge of technology? But increasingly, small and medium-sized businesses are also leveraging startup technologies in the field of industrial tech. We’ve compiled some exciting current cooperation examples for you:

• Cooperation between BMW and Figure

A prominent example of cooperation in the field of industrial tech is the collaboration between BMW and the California-based company Figure, whose humanoid robots have been intensively covered in recent months. These robots can quickly, effortlessly, and precisely place sheet metal parts with their special sensors and AI control, and are expected to eventually take over tasks that are extremely physically demanding, sometimes dangerous, and ultimately unattractive for humans. This makes the car manufacturing process more efficient, allows for changes without extensive training of staff, and will free up workers, who still have to endure unhealthy shift systems in many automotive manufacturers’ assembly lines, for other tasks in the long term.

• Cooperation between Siemens and Ethan AI

Siemens is also one of the corporations that has deliberately focused on cooperation with startups in the field of industrial tech for years, including Ethan AI. The young company, founded by graduates of ETH Zurich, specializes in improving and optimizing production processes using artificial intelligence. Large volumes of data play a crucial role in this. These are to be collected, analyzed, and integrated into the AI algorithms of Siemens’ Smart Infrastructure division through Ethan AI in factories. Ultimately, this gives Siemens the opportunity to improve process quality, act faster and more cost-effectively, and stay one step ahead of competitors in the long term.

• Cooperation between Findiq and Hymmen

It’s not only large corporations but also medium-sized companies that can benefit from the ideas and developments of founders from the industrial tech scene. Hymmen, a machine manufacturer for wood processing, which cooperates with the startup Findiq, is an excellent example of this. Findiq has digitized the expertise of service technicians and integrated it into an assistance system. Service technicians can quickly and easily access the software in their daily work when they are unsure and receive support in diagnosing and fixing issues. This example demonstrates how solutions in industrial tech can not only improve processes and products but also enhance service quality. It also exemplifies that new developments don’t necessarily have to replace jobs but can serve as practical tools that make daily work easier for skilled professionals.