Exciting times? New opportunities arise when innovation meets need

As our Prime Minister likes to remind us, we are living in “exciting times” and that’s very true — however, how do we turn that excitement and opportunity into reality? It’s like turning potential energy into kinetic energy: you need connections. The electricity has to flow and the rubber has to meet the road. How do we do that in the industrial world?

What role do existing manufacturers have to play and what practical steps can innovators do to maximise opportunities?

As Australians we have a distinct advantage in our acceptance of new technologies and ideas, in that that we aren’t affected by the ‘not invented here syndrome’. This is simply because very little is actually invented here! Unlike countries like Germany, the USA or Japan, Australia is truly a more level playing field, where new ideas and solutions stand on their merits and buying decisions are not typically influenced by a preference for local manufacturers.

The new paradigm that is slowly making its way to the industrial world has many names: Industrial IoT, Internet of Everything, Industry 4.0. Call it what you will, the fundamental point is that there is now a new set of tools that can be deployed to solve problems and integrate manufacturing with other parts of an enterprise.

I see four areas that need our attention so as to maximise opportunities, particularly in industries where we have a reasonable market for local suppliers to target, such as agriculture, mineral extraction, oil and gas, and renewables. Those areas are marketing, end-user opportunities, collaboration and outsourcing, and education.

Aussie companies typically don’t spend proportionately as much on marketing as US-based companies. Self-promotion isn’t part of our national character or ethos. Yet ironically it’s never been easier or cheaper to promote your wares — and especially so in niche areas of industrial electronics. So it’s imperative that local innovators let potential users know of their existence and what problem they are solving.

In terms of end-user opportunities, manufacturing enterprises play a crucial role: they have the potential to offer opportunities to start-ups and smaller enterprises. They need to embrace innovators and, in a way, to even incubate them. There are many ways they can do this. For example, creating problem-solving competitions or by taking a small equity stake in a range of start-ups.

In relation to collaboration, our culture tends to work against us, as we are fiercely independent — often to a fault. Engineering-driven organisations tend to want to reinvent the wheel, even if their area of expertise is limited metaphorically just to the rim, spoke or hub. We need to focus on our value-add, specific IP or process, and explore the value in outsourcing or partnering with others in areas they specialise in.

We also need to invest now for the next generation of innovators. STEM subjects need more funding and attention; however, they are instruments in an orchestra: where is the focus on the conductors and composers? Schools should be teaching STEAM — the ‘A’ being for artistic: for creative people and entrepreneurs. They are the drivers of innovation. Our children need to be taught real-world skills in entrepreneurship so they have the confidence to start or get involved in new ventures.

Manny Romero is Managing Director ANZ for Swedish company Westermo Data Communications Pty Ltd. He has worked in the automation field locally and internationally since 1986, and for the last 15 years has focused on industrial communications. He is excited about the Industrial IoT and the opportunities it brings for local innovators.

Image Source: Andrew Meares/smh.com.au