IoT Use Case: IoT in Manufacturing: Connect Brownfield Environments

Episode 182 at a glance (and click):

• • Challenges, potentials and status quo – This is what the use case looks like in practice
  • Solutions, offerings and services – A look at the technologies used
  • Transferability, scaling and next steps – Here’s how you can use this use case

 

Podcast interview

Hello, IoT friends! How does a traditional system – like a nitrogen generator – become a digital IoT use case with real added value for energy efficiency and service? And can it even help prove CO₂ savings? Today we’re leaving out the buzzwords and taking a practical look instead. To explore this, I’ve invited the company AIRCO – specifically AIRCO Systems – to join us. They’re an exciting mid-sized business based in Oberursel, near the Taunus mountains in Germany. Their core focus is technologies for nitrogen, compressed air, and oxygen generation. Of course, we want to know: What exactly are you doing with IoT? What kind of data does such a system provide? What can you do with that data? And what challenges do you face when integrating the data – whether into other IT systems or at the point of data collection?
Joining me today is Falk Recknagel. He works at AIRCO Systems and is bringing digital services into compressed air and nitrogen technology. Also with us is Udo Richter from EXOR Germany. EXOR provides the IoT platform powering these solutions. Let’s get right into it. You’ll find details on how projects like this are implemented at iotusecase.com and in the show notes. Enjoy this episode!

Welcome, Udo and Falk.

Falk

Hello.

Udo

Hello.

Falk, I’ll start with you. How are you doing right now? and where are you joining us from? Where are you?

Falk

As usual, still at the office. I’m currently working on some exciting developments in the company and the market.

Fantastic. As I mentioned, you’re based in Oberursel. What’s it like there? How big is the site? What’s the region like?

Falk

That’s a good question. I’m originally from Munich. And because I’m so connected to the company, I’ve now made Oberursel my professional home. The nice thing about it is that it’s close to Mainz, Wiesbaden, and Frankfurt. For now, it’s a temporary solution. Right now, we have around 45 employees.

Great. I’m excited to learn more about AIRCO. And greetings to everyone listening – and of course, greetings to Hessen! Great to have you here. Udo, how are you doing? You’re probably not in Oberursel – where are you right now? And how are you?

Udo

I’m doing well, too. The weekend is just around the corner. I’m currently in Bamberg, which is where I live. In my role, I travel between Bamberg and Wuppertal, where EXOR Deutschland GmbH is headquartered, and Verona in Italy, where our parent company is based. They’re located in northern Italy. So, I’m quite well-positioned in between.

Fantastic. Maybe for context: many listeners probably know EXOR for providing solutions in HMI, control systems, and now also IoT – and you’ve been doing that for half a century. Your headquarters is in Verona, right?

Udo

That’s right, yes. It’s been based there from the beginning, actually. As you said, we’ve been known for our hardware solutions for over 50 years and in the last 10 to 15 years, we’ve significantly expanded into software and IoT.

Isn’t Verona even a UNESCO World Heritage Site? I think I’ve been in the region once. Probably a fascinating area for business, too, right?

Udo

Yes, absolutely. It’s a really beautiful region. Verona is indeed a UNESCO World Heritage Site – just like Bamberg, where I originally come from. So I feel very much at home there. And if you’ve never been to Verona – you’re always welcome. Come visit and see for yourself.

Very nice. Also to our listeners – maybe we’ll plan a visit and check it out together. Verona lies between Milan, Venice, and Bologna – a region where many people go on vacation. But it’s also home to a lot of mechanical engineering, automotive, suppliers, radar tech – it’s a highly interesting region. Now, for the first question: how come the two of you are joining me on this episode today? Is there a story behind how your companies got to know each other?
What brought both of you here to the podcast?

Udo

We almost shared a work history but missed each other by about six months. Falk knows both AIRCO and EXOR from both sides. I’ve only worked with EXOR, and got to know AIRCO through Falk, when I later started handling the sales side for AIRCO.

That makes sense. Maybe we should also explain what exactly AIRCO does. I did some research beforehand and checked out what you have online. Let’s start with you, Falk, then go into AIRCO. You’re responsible for product management and service at AIRCO Systems, bringing over a decade of industry experience, especially in compressed air and gas generation – a fascinating field. And now you’re increasingly dealing with digital topics: smart services, predictive maintenance. We’ll dive into those in a moment. But first, can you give us a quick overview of what’s happening in your market right now, and what AIRCO – or AIRCO Systems – actually does?

Falk

Gladly. AIRCO Systems is an owner-managed, medium-sized company with around 45 employees, as mentioned earlier. In the field of on-site nitrogen generation, especially in the laser application segment, we are the global market leader. If I look at the company as a whole, I see us as an innovation driver and a pioneer in industrial development, because we focused on digitalization very early on. AIRCO was one of the first companies in the nitrogen generation space to explore a pay-per-use model. That means: the customer only pays for the cubic meters of nitrogen actually produced. That was around 2015, so about ten years ago. At the time, the model didn’t take off yet, because the technical tools simply didn’t exist.
AIRCO was also among the first companies to digitalize its service. Even back then, we used cloud applications to connect our systems worldwide and enabled significantly faster response times. That already moved in the direction of predictive maintenance. So we implemented the Industrial Internet of Things quite early on. I’d say we were real pioneers – but the market wasn’t ready yet. The solutions were already in the drawer, but we first had to convince the market.

That’s interesting. Today, we’ll try to translate all of that into practical examples – what predictive maintenance and the other topics actually mean for your business. Just for context: you mentioned laser applications earlier. Could you briefly explain the connection between nitrogen generation and your customers’ laser processes? This is just to help those listening who may not be familiar with the industry.

Falk

Exactly. It’s important to know that AIRCO really grew with those laser applications. Together with our customers, we made the transition from a service provider in compressed air technology to a full-fledged machine builder. Today, we’ve expanded our focus. It’s no longer just about laser applications using medium pressure, such as 30-bar nitrogen supply. We aim to serve every market where nitrogen is used as a shielding gas. For those who haven’t encountered this before: I like to explain it with a beer bottle. When you open the cap, there’s a protective gas inside – usually nitrogen. Same with a bag of chips – there’s nitrogen in there too. Why? Because oxygen is a highly reactive gas that causes changes in the product. Whether it’s in the food industry or electronics – for example, in soldering, where you want to prevent crater formation – the goal is always to displace oxygen and avoid unwanted reactions.

Makes sense. That’s something most people can relate to. So how do your digital services come into play? Are these the systems you connect to collect data and generate added value? Or what exactly is behind it?

Falk

Exactly what you just said. I believe that, as a machine builder today, you need to differentiate yourself by the added value your system delivers beyond its core function. There are other manufacturers offering nitrogen generators, and the technical setup is often quite similar. The key differentiator lies in the control system and the digital value you provide to your customers. For that, you need to connect your systems. Only then can you identify dependencies and address current topics like renewable energy or CO₂ savings in a meaningful way. And for that, you need a robust digital tool.

Yes, absolutely. Maybe one last question on this: What kind of data do your systems typically provide? I don’t want to go too deep into process parameters, but in general, what kind of information can be captured? What insights can you get from such a system?

Falk

As you said – threshold values, information on purity levels, which are important for quality assurance. When the system is running, how it’s running, how much energy it consumes, what the product profile looks like. You need this kind of information not just to monitor the system itself, but to optimize the entire production process as efficiently as possible.

Right, I was just thinking – your customers likely run these systems continuously. Sticking with the beer bottle example – I don’t know if that’s one of your actual customers – but basically, we’re talking about manufacturing companies that need to maintain certain conditions. That means your system is probably just one part of a larger, upstream or downstream process, correct?

Falk

Exactly.

Alright, let’s dive into your joint project a bit to better understand how everything fits together. Could you briefly explain what exactly the project is about? You already mentioned purity levels and thresholds, and talked about added value for your customers. What is this digitalization project that you’re working on together?

Falk

We’re currently working with EXOR on two project tracks. The first one focuses on our entire service process. The goal is to make it significantly more efficient. But that only works if I receive real-time information from the system – for example, if something is operating outside the normal range. For that, I need active feedback so I can give the customer a sense of security – like knowing we’ll be on-site quickly or that we can prevent faults early on.
The second project revolves around energy management. As you mentioned at the beginning – our system is just a small part of the entire production chain. But it’s important for us to look at the full chain, especially in terms of energy consumption. The idea is to put these energy flows in relation to energy sources – usually renewables like wind or solar. The goal is to switch certain loads on or off depending on energy availability. That’s the big challenge. It turns a machine into an active component for energy storage or resource conservation. And that creates an entirely new story for marketing as well.

Okay, maybe a follow-up question: How do your customers handle this today if they don’t have these digital services? Is everything really done without monitoring? Or is it more of a manual process? What does it look like in practice when you talk to customers who haven’t implemented a digital solution yet?

Falk

Exactly as you said. Either everything is done manually, or the systems just keep running. Especially today, when companies are increasingly required to prove they are producing in a CO₂-neutral way – that’s becoming standard in the industry. I mentioned it briefly with Udo earlier: it’s similar to electric mobility, where the goal is to reduce your CO₂ footprint. The same applies to industry. We need to be able to demonstrate that we’re generating CO₂-neutral nitrogen – and self-generation is a very effective way to do that. It gives our customers real added value. These are the kinds of use cases we aim to automate.

I’d also like to follow up on that – how exactly does this CO₂-neutral nitrogen production work? And why has that been so difficult for many of your customers to implement?

Udo

I find that super interesting, and it’s exactly what makes working with AIRCO so valuable. AIRCO is really one step ahead in this regard. Many processes are already digitalized rather than being manually tracked. We ourselves started down this path about five or six years ago, and then scaled it up around four or five years ago. It opened up many opportunities for optimization – in terms of both processes and resource usage. Energy prices have risen significantly in recent years, and they’re just now starting to stabilize. We touched on it briefly in our prep call: Many are still hoping for cheaper energy instead of actively asking where and how they can reduce their energy consumption. That’s what makes discussions with AIRCO so exciting – because we’re very aligned in our thinking.

Okay, and when you say “we,” you mean your own production processes – that you face similar challenges yourselves?

Udo

Exactly. It’s really about increasing efficiency – with both natural and human resources. Both are limited. Everyone wants to grow in the market, and to do that, you have to manage your resources as effectively as possible. For us, that means restructuring product flows and optimizing processes to get the most out of what we have.

And it’s worth pointing out that you’ve built up a lot of in-house expertise. You don’t just manufacture your own products – you also learn from your own projects and feed that experience into customer solutions. Many people may not even realize that you’re not just classic automation providers, but also produce your own components.

Udo

Yes, exactly. Everything is based on our own hardware and software. We use the same technology in our own production that AIRCO uses in its systems. In some cases, it’s the exact same product families – same hardware, same software. That means if something doesn’t work or could be improved – to put it positively – we’re the first to notice. So in a way, our own production is like a testbed for us.

[13:15] Challenges, potentials and status quo – This is what the use case looks like in practice

Interesting. Let’s dive a bit deeper into your joint project. Maybe one basic question first: What are your customers actually losing – to put it bluntly – in terms of time and money, because they aren’t using these digital services yet? Have you learned anything from your customer conversations or seen best practices where you think: this could be done so much more easily or digitally?

Falk

Yes, if you ask me what our customers are losing, the answer is clear: money. Everything is getting more expensive, and that money has to come from somewhere – but it’s often just being thrown out the window. Let me give you a quick example: If I have a system – any kind of system – and it’s not digitally connected to the service team, it can lead to downtime in the worst case. With a digital solution – if I had someone on the other side who could provide remote support – the issue might be solved in twelve hours. Without digitalization – with error analysis, sourcing spare parts and everything else – it can easily take two or three days.
You can calculate for yourself what two or three days of downtime mean. It’s not just about lost production output, but also staff downtime, delivery issues, and stressed-out customers. These are exactly the kinds of problems you can manage much better and faster through digitalization. But that’s something people need to understand first. And I believe the market has really shifted in that regard. That’s what makes this so exciting right now. Many companies already have ideas – and Udo and I often say: the solution already exists. We just need to talk to each other.

Exactly – and that’s a great point: just talk to each other. If you’re listening right now and facing similar challenges in your operations – even if it’s not specifically about a nitrogen system – check the show notes. I’ll include your contact info there – feel free to connect and exchange ideas.
Maybe that’s the start of something new.
One more follow-up question: Earlier, you mentioned remote monitoring and service cases. Are there also added benefits when it comes to smart nitrogen production if you leverage those data? You mentioned purity levels earlier. Isn’t that also a chance to build new services? After all, you know your systems and processes inside out. Is that part of the picture too?

Falk

Purity levels vary depending on the application. That’s not something you can really tweak digitally, because it’s a fixed specification. But what you can do: if you use storage media for the generated gas, and then produce while operating CO₂-neutrally – in other words, if you power the system with renewable energy – then your nitrogen generator becomes the best energy storage solution in the world. You have to produce the medium anyway. If you do that with self-generated power, you not only reduce your energy consumption but also prevent load peaks. And that’s a huge advantage. On the one hand, you can operate almost at zero cost.
On the other hand, more and more industrial companies are interested in avoiding peak loads. And that’s something you can handle really well through digitalization – by selectively switching certain consumers on or off.

Udo, you’re now General Manager at EXOR Germany, with more than 20 years of experience in automation and control – and now also in IoT. Do you see similar challenges with other customers? I’m asking this especially in light of EXOR’s strong focus on digitalization. You’ve built an extensive offering in this space. What’s currently happening in your market? Are these typical new challenges, or are there other trends you’re seeing among your customers?

Udo

These are definitely the kinds of challenges Falk mentioned. Here, it’s about nitrogen. For us, it might be components. For others, it’s topics like e-mobility or fast-charging infrastructure. In all of these cases, huge amounts of data are collected and need to be tracked. There are also additional requirements, like compliance with calibration laws or cybersecurity, which is becoming increasingly important.
And as you said – I’ve been in this industry for over 20 years, but I’m not a classically trained electrical engineer or automation expert. I come from a business background, so I’m comfortable working with numbers and bring a different perspective to these challenges. I tend to look at things from a higher-level, strategic point of view. I understand the concerns and priorities from a business standpoint. That’s often a different approach than a developer might take, who is usually focused on finding the most technically perfect solution. But the real question is: does that solution actually help the business move forward?

Absolutely. I’d love to come back to your portfolio in a moment – it’s exciting to see what you’ve built at EXOR, especially your own technology platform. But before that, one last question about technical hurdles. Were there any challenges in this project where you realized that integrating a system wasn’t so straightforward? Thinking of things like retrofit or data interfaces – was that smooth for you, or were there technical complications? Earlier, you mentioned that your systems are used around the world. Were there situations where you thought, “We should definitely bring in a partner here”?

Falk

I don’t want to sound like I’m promoting anyone, but if we didn’t share the same philosophy as EXOR, we really would have run into problems. The biggest challenge is that nearly every manufacturer uses their own protocol. I often explain it to our customers like this: everyone speaks a language, but in a different dialect. One sounds like someone from Cologne, another like someone from Bavaria – and that’s still manageable. But then you also have Mandarin, English, and German – and you somehow need to bring all of that together. That’s a real challenge. And that’s exactly where EXOR and AIRCO come in. Our philosophy is: it doesn’t matter what language you speak – we have a tool that translates and unifies everything.
Whether it’s Modbus TCP, Modbus RTU, ABB, or – without naming names – Siemens: this is the reality our customers face. Our approach is simple: everything must be connectable. And if a solution doesn’t exist yet, we’ll find one. It also has to be cost-effective. Because digitalization shouldn’t be expensive.

Udo, how do you see it – also in terms of synergies from your partnership? You face these same challenges internally, and now you’re offering the solution to the market. How do you assess the topic of connectivity? Is it still a challenge for you, or do you feel that your offering is already well positioned?

Udo

What Falk said wasn’t just a nice plug – it’s simply the truth. And I fully agree. For us, connectivity is – even though I don’t like the word – not really a challenge, because we support more than 200 protocols. That’s actually one of the core strengths of our software: its comprehensive connectivity. Building a new system on a greenfield site – many companies can do that, and plenty of other systems will work as well. But when it comes to IoT and brownfield projects, where you deal with existing equipment from all over the world, with various control systems and protocols – that’s where the real challenge begins for many companies.
You mentioned it earlier: our FEP is based on our own technology and our own components. Two years ago, we took part in the Factory Innovation Award – focused on the digital transformation of manufacturing. Applicants included institutions like Fraunhofer. We received a special award for interoperability – because of our software and the range of supported protocols. And again, building something on a greenfield site is easy. But that’s not the real-world use case. What we see in the market is the need to communicate with existing equipment and bring together data from all areas of production – either at the edge or directly in the cloud. That’s where we’re very well positioned. We see it as exciting, but not as a challenge.

I’ll include this award in the show notes, so people can read more about what was recognized as a best practice.

[21:15] Solutions, offerings and services – A look at the technologies used

Before we wrap up, I’d love to hear your thoughts on typical pitfalls or best practices based on your experience with projects like this. You’ve been working together for a while now.
But before we get into that – I want to take a closer look at your solution. Udo, you just mentioned your technology platform. If I understood correctly, you’re offering a platform solution that includes your own edge controllers. You originally come from the hardware space and have since built a platform on top of that, which I know as the X Platform – with a capital “X”, right? This enables data processing, remote access, integrations, and various visualization options. Would you say that’s roughly correct?

Udo

Yes, broadly speaking, that’s correct. Our X Platform has evolved significantly over the years – not just internally, but we’ve actually been calling it that for more than ten years. It’s a platform that includes a range of software tools but also comes with the corresponding hardware. And the key point is: it’s a truly open platform. As we mentioned earlier, the wide protocol support is what makes all the difference.
With our platform, you can implement anything – from a small 4.3-inch web panel to a full-scale IoT application. But you don’t have to use everything we offer. Thanks to the interoperability, you can pick and choose exactly what you need.
To make the connection to AIRCO: they’re using our hardware, our VPN solution, the soft PLC, the visualization, and also the core IoT platform for data handling. For us, AIRCO is a model customer who uses almost the entire platform. But you can also just use the IoT platform or just the hardware – and that flexibility is what sets us apart.

Very nice. Falk, what does that look like in practice? How do you actually implement this for your own operations and for your customers? Speaking pragmatically: You’ve got your nitrogen systems out in the field – how do you physically connect them using the hardware? Can you explain that in a bit more detail?

Falk

It’s actually quite simple. As we said earlier, the nitrogen system doesn’t work on its own. You need a compressed air generator in front of it, and you need downstream systems behind it. In the smaller setup, we run everything through our PLC. We aggregate the data and already run a first layer of logic on the controller itself. When it goes further – into areas like evaluation, energy management or production efficiency, which are common challenges for any plant – we network the system and send the data to the cloud. And the great thing about the cloud is that you can customize everything to a high degree. No matter how “crazy” – as I like to call it – your challenge might be, there’s a solution for it.
EXOR even goes so far as to provide ready-to-use applications for recurring challenges. So they guide you a little and show you how they would implement certain things. But of course, every production setup is unique. That’s why I always say: Give me your specific pain points, and we’ll work from there. This openness and flexibility was also one of the key reasons we chose to go all-in on this solution. We’re a creative team, and we need a partner that can support that.

Okay, So you’re using the IoT platform – in this case, the X Platform – to implement your own service use cases on top of it. And the whole thing is white label, meaning it says AIRCO in bold on the front?

Falk

Exactly. And it goes even further. We also have OEM partners who use the same system – and they get it with their own branding as well. That’s important these days. I want my name to be visible, because that’s how I position myself in the market. And of course, it wouldn’t make sense if it said EXOR or AIRCO instead.

Makes total sense. And maybe to wrap things up, let’s go back to the topic from the beginning. You talked about CO₂neutrality. How do you implement that in practice – and is there a direct connection to the use cases you’re building for yourself and your customers?

Falk

That’s actually a perfect example. How can I prove that I’m producing in a CO₂-neutral way? In the end, it all comes down to where the energy comes from. If the energy is CO₂-neutral, then my production is CO₂-neutral as well. In our field, you compare it to the CO₂ balance of the gas supplier – there’s a fixed value for that. You get a CO₂ footprint certificate, and you compare that against your own, ideally neutral, value. That gives you your savings.
But that only works if I’m continuously tracking my energy usage. At the end of each month, I give the customer a complete, documented overview – usually in PDF format. And it’s exactly these kinds of details that set our solution apart from others in the market.

Okay, And does the comparison between in-house nitrogen production and traditional gas cylinders or tank supply play a role in this discussion?

Falk

Yes, those are exactly the advantages you get. You produce your own supply, you’re independent from external vendors and from highly volatile market prices. There are no supply shortages – and most importantly, you’re CO₂-neutral, or at least significantly reduce your CO₂ footprint if you work with renewable energy. That’s how it works.

Very nice. If you’re listening right now and thinking: “We should definitely talk about this” – as I mentioned earlier, we have our own community. You’re more than welcome to join. Falk, that goes for you as well – it would be great to have you join the exchange with other users. These are exactly the kinds of topics many people are dealing with: How do you actually solve this? What are some best practices? So feel free to join the community or connect directly with Falk and Udo.

[26:28] Transferability, scaling and next steps – Here’s how you can use this use case

Of course, we can’t go into every detail here on the podcast – many of you have very specific questions. Don’t hesitate to use this opportunity.
Now, do you have any best practices you’d recommend? Things to really keep in mind – whether it’s hardware integration or IT topics? Things that could save people from having to do a second iteration? That’s one of the questions I get asked most often.

Udo

I do have a point to make. We’ve just come out of a components crisis, especially with semiconductors. And it looks like the situation might worsen again. What really stood out in our collaboration with AIRCO was the open communication – and the shared commitment to becoming more independent from hardware. Software availability is usually not the issue – power grids and internet connections tend to be stable. But when a product can’t be delivered just because of one three-euro component, the real question becomes: How can we keep going regardless?
That was a serious stumbling block, and we talked about it a lot. We learned how important it is to keep hardware families flexible and to allow for interim solutions until the supply chain recovers. That’s also why the role of software is becoming increasingly important for us. We may come from a hardware background, but we’re steadily moving toward software – because that’s where long-term value is created.
And because it makes us less dependent.

Falk

I’ve got one more thought. We often ask: What could go wrong? But maybe we should be asking: What could actually get much better afterwards? What I’ve seen is that many people start out thinking too big. They picture the entire solution and already imagine the perfect final setup. What I really recommend – and this is how we approach things too – is: Start by imagining your ideal outcome. Then define the smallest possible starting point. But make sure that point is scalable later – something you can build on. That’s when things go well.
And even if you get a little off track – that’s not a big deal, it can all be corrected. But what really matters is: First reflect on your own needs. Think about how your production should ideally run. Then find a partner who can go on that journey with you. That, in my opinion, is the most important advice. Don’t let anyone dictate how you’re supposed to do it – your situation is unique. Every production environment is different. Every requirement is specific. And we, as solution providers, service partners, and manufacturers, need to be able to support our customers in that. If we do that, the result can be truly great. That’s when things really work.

There’s one more question that often comes up in our community – it’s about change management. How do you handle that when talking to customers about digital solutions? You’re coming from a traditional business, and now suddenly there are data topics on the table. Are there any best practices you follow to guide customers through this change? Especially when working with companies that are still more traditional and say things like, “This is how we’ve always done it.” How do you get them on board?

Falk

The market is changing massively right now. That old mindset – “This is how we’ve always done it, so we’ll keep doing it this way” – just doesn’t work anymore. Two or three years ago, things really started to accelerate. A new generation is stepping into leadership roles, and they’re taking a close look at what’s been done so far and asking, “What do I need to change to stay relevant for future customers?” So the question is no longer, “Do I have to do this?” It’s more like, “When do I start?”
What I always recommend: Talk to your customers. Be open about the fact that there are new possibilities. But don’t just throw a bunch of key facts at them. What’s needed is solid, thoughtful sales work. You need to guide the customer – maybe even challenge them a little. Show them what’s possible and what concrete benefits it brings. But always make sure they feel that it’s their path – their decision.

Yes, that’s my impression too. It’s really about how you approach the topic together. IoT is a broad field, and it takes a collaborative mindset to develop solutions step by step. That’s why I wanted to touch on this point again.

Udo

I completely agree. You need to explain things clearly – not just present features, but talk about real value. And as Falk already said, the entry barrier needs to be as low as possible. Start with a small initial project, something relatively straightforward, with the right level of support. And then find a partner who’s capable of scaling it further.
That’s critical. If you – or the customer – get caught up in complex structures too early, it won’t work and the frustration will be huge. So as a provider, you have to make things as easy as possible. Especially during onboarding, it’s important to be close to the customer so they can truly experience the value for themselves. Anyone can talk – but what really counts is delivering tangible results.

Exactly. And the topic of pricing comes up a lot in our community too. Many people ask: How do I price digital services? What is the customer actually willing to pay – and for what? Especially with things like condition monitoring, where the value isn’t immediately obvious.
That value has to be developed together. I think the key is close collaboration to create a true win-win. Falk, how did you handle that? Did you have a fixed pricing model from the start, or did it evolve over time? That’s something many people are trying to figure out right now.

Falk

We don’t have a fixed pricing model for that. Of course, for classic technical support, we do have standard hourly rates and flat fees. But when it comes to digital services, we offer an entry-level price. That entry point usually just includes the visualization part – something everyone can immediately understand. From there, we go through it step by step with the customer, looking at what else they might need or want to implement. That’s how we define the additional services – typically based on man-hours. And that makes it very easy and transparent to calculate.

So the features and benefits you offer are tailored to each customer – very interesting. I could ask a hundred more questions, but we’d probably go over time today. Maybe one final question to wrap up: What’s next for you? If we look one or two years ahead – what’s coming up? Are you jumping on the AI hype? Is that already something you’re working on? What are you currently focusing on, Falk – and you too, Udo, in terms of your product roadmap?

Falk

For us, the main focus is still on energy management, efficiency, and productivity gains. That’s what we’re working on. Where exactly it will lead – I can’t say for sure. That really comes from talking to our customers. Our control units, our HMIs, and the whole IoT topic – all of that only came about because we had conversations with customers.
And regarding AI: From my perspective, it’s more about customer intelligence than artificial intelligence. Of course, there’s something artificial in the end – algorithms and all that – we know how it works. But for me, it’s really about making our customers’ knowledge and experience usable through technology. And that’s always individual.

Udo, do you want to add something – what’s ahead for you?

Udo

Yes, I agree. The AI hype is definitely a huge topic, and one we could easily spend a whole episode on. For us as a provider – especially of hardware – AI is relevant because it requires extremely powerful hardware to run those underlying algorithms. And in that case, nothing is one-size-fits-all. It always depends on the specific use case. Every application needs to be assessed individually, and the hardware has to be configured accordingly.
And here again, just like with digitalization, scalability is key. Hardware needs to be adaptable – ideally expandable later on. Or at the very least, you should be able to swap components within a device family without much effort when performance limits are reached.
One topic we haven’t even touched on today – due to time – is cloud vs. edge. Especially in the edge space, it’s a highly relevant topic. Maybe we’ll do a separate episode on that sometime.
In general, we operate in mechanical engineering and develop for the mechanical engineering industry. Every project, every conversation brings new insights. We own all the necessary technologies – both on the hardware and software side – and that allows us to react quickly to new market demands. That’s absolutely essential today.
When it comes to AI – yes, we’re already working with it, testing and experimenting. You can’t ignore it, especially when it comes to saving resources, addressing the skilled labor shortage, and unlocking efficiency gains. In the end, our goal is to provide technologies that allow our customers – the machine builders – to focus on what they do best.

Yes, absolutely. I also think we could easily do a dedicated episode just on AI. Thank you both so much – also for these closing thoughts. And for those of you who’d like to keep listening: In Episode 178, we already talked about AI, specifically in the context of AI-assisted services. Feel free to check it out – maybe while you’re driving, doing laundry, or wherever you happen to be.
For now, thank you both for joining me today. I thought this session was really concrete and hands-on – it made the added value very clear, showed how the market is developing, and provided a great real-world example. It was fascinating to see how AIRCO is set up, and how both of you – AIRCO and EXOR – are approaching this topic.
With that, I’ll hand it over to you for any final words. From my side: a big thank you again!

Falk

All I can say is thank you as well – it was a great exchange, and I look forward to continuing the dialogue in the community, as we like to say up here in the north. I’m convinced of this: when we talk to each other, we can truly achieve great things. And I don’t mean that as some kind of Sunday sermon – more like a nice message for a Friday afternoon. With that in mind: Have a great weekend!

Udo

Same from me – I really enjoyed this. It was a great conversation, very much like the one we had recently in person, where we also talked about technology and the future – from both the customer’s and supplier’s perspective. And I’d like to invite everyone from the community to come and visit our production site in Verona. It’s data-driven, digitalized – and just really exciting to see in action. And by the way, the sun is coming out here now – so I wish you all a great weekend!

Wishing you both a great week – take care. Bye!

Udo
Bye!

Falk

Bye!