Investing in Israeli IIoT Companies
Tal Paperin delivered an excellent primer on Israeli Industrial Internet of Things (IIoT).
He explained how IIoT interfaces with supply chain management software and artificial intelligence. He discussed factories procuring IIoT pre-installed on machinery versus retrofitting older equipment.
If you don’t know the answers to the following questions, you really should listen to this podcast.
- How important is 5G to IIoT?
- To what extent are employees and unions opposed to IIoT deployments?
- Can IIoT legitimately be called a ‘green technology’?
- How are IIoT sensors powered? What kinds of communications protocols enable IIoT communications? To what extent are IIoT systems and sensors interoperable?
- How important is cybersecurity to ensuring the smooth running of IIoT? How rapid are IIoT sales cycles?
One of the fascinating Israeli companies that Tal introduced us to is Augury.
Tal Paperin, Vice President of Global Sales, Bacsof
Tal Paperin is the Vice President of Global Sales for Bacsoft, an Israeli IIoT Company, backed by Sun Corp. from Japan. During his career, Tal has managed all aspects of International Sales, Strategic Business Development and Global Expansion.
He has opened new markets, trained sales teams, secured distributors, managed budgets and pipelines, and negotiated with venture capitalists. He speaks English, Hebrew, Russian and Chinese.
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00:00:59 – So industrial IoT is a relatively new concept.
A couple of decades ago, it was called M to m machine to machine companies, especially companies in industry, big companies, philips to Shiba, companies in Japan and also companies in Germany. They realize the fact that you can no longer continue manufacturing the way you did 100 years ago. Ford Model T was the first conveyor production.
Then you had the first industrial revolution, then you had the second. And now the experts saying that we are in the fourth industrial revolution, or it’s called Industry 4.0. Industry 4.0 is a huge book of what is it that it means, but basically it means connectivity.
When machinery talks to other machinery, and you as the end user or the one that uses those machines, or you’re running that production, you not only need to be able to know exactly what’s happening with each machine, but you also need to be able to predict certain things.
You need to be able to predict performance.
You need to be able to predict pipelines and break time downtime and so many other things. IoT, internet of things that’s the new term that replaced MTM means that everything is connected.
00:09:48 – The beauty of IoT or just any software, is that you can break it down.
it’s the latest the key word here is visibility and traceability, meaning that our days the production chains and the supply chains are global. So the raw materials are coming from one continent, from several countries. The production is on another country with some other countries. Then it’s all been packed and shipped to another destination. So the stakeholders and the decision makers want to be able to see the entire chain.
Now, the beauty of IoT or just any software, is that you can break it down, meaning that if I’m the owner of the factory, I just want to know that there are no problems. So I can get alerts or notifications in case if there’s an issue with the production.
But if I’m the maintenance manager, I care about other parameters. I want to know exactly how much oil is consumed, how much raw material is consumed, what’s the expectancy, when do I need to do maintenance and upkeep, and many other parameters.
So you get the visibility throughout the chain. Sorry, a small step back our days there’s the exact problem, the exact opposite problem of what you had previously. If previously you had no idea what was happening throughout the chain, later on, with the machine to machine and the IoT, you became flooded with the data.
00:28:23 – We don’t want to be manufacturing like we’re in the 19th century.
I work closely with semi-governmental body called the Institute for Advanced Manufacturing. Israel went to Germany a decade and a half ago, and they thought that the Germans are really at a whole different level at manufacturing.
And they started this revolution called Industry 4.0. So the Israeli government decided that we should also take charge and created a body that pushes old-style traditional manufacturing factories in Israel to become more advanced. The opposition to this process. So let’s start with the positive. Manufacturers are accepting this gladly. We want to be in the 21st century.
We don’t want to be manufacturing like we’re in the 19th century. Sure, we need the tech. We understand the benefits, we see the value. It’s fantastic. We cannot operate any otherwise, so they adopt. On the other hand, you have huge factories, especially where I am.
I’m located up north. And up north has way more than half of the Israeli industry compared to the center, where you have 60, 70% of the population. But let’s say 15% of the manufacturing versus the norm. That does about 15% of the population, but close to 60% of the manufacturing.
00:34:47 – It’s pro green in many other ways.
It’s pro green in many other ways. For example, let’s talk about water quality for a second, okay? Water and industry, as you know, industry pollutes water could be rivers, the seas, groundwater, you name it.
With IoT, every supervising body like Environmental Protective Services or the Ministry for Environmental Services across the globe within, I would say, a day, they simply place water quality sensors all around the factory.
And now the factory knows that they cannot dump anything or they cannot allow themselves to have any kind of malfunction because within seconds, the supervisors or the body that’s above the monitoring, that will know, and they’ll know exactly who polluted and with what. So that’s a huge environmental impact.
Then if we look at the water companies themselves, the efficiency grew by multiple times the operation abilities, not just the quality of the water, but the efficiency and obviously the electricity.
Obviously, the amount of power now required in manufacturing or in infrastructure companies went down significantly.
00:40:16 – So back in the day when you saw a hacker attack, the hackers would hack a server, right?
I, by myself wanted to start a startup literally two weeks ago with this exact focus. I don’t know if you saw in the news, but a couple of months ago, iran hacked an Israeli water plant. Okay? So back at the day when you saw a hacker attack, the hackers would hack a server, right?
There’s information on the server that we’re going after the information. Nowadays, hackers know how to hack equipment. A hacker can hack into your vacuum cleaner.
So Iranians hacked into a water treatment plant and there was a mixer there that cleans the water by adding chemicals into the water. So once you have that, you can release an unhealthy amount of chemicals into the water supply.
That’s IoT. Okay?
So the layer of IoT required, especially in the industry, is very, very high. And there are strict protocols and a lot of demand.
00:48:46 – When I started with IoT, let’s say 15 years ago, I worked in a company that had dozens of engineers
But if something’s off 100%, the sensors are extremely accurate. The sensors are extremely accurate. And once again, it’s all about the price you’re willing to pay. So the more precise, the more unique, the more robust of a sensor, the more it will cost.
But once again, the point here is definitely not the sensors. Everybody can manufacture sensors. I was astonished. I was blown away. When I started with IoT, let’s say 15 years ago, I worked in a company that had dozens of engineers developing sensors and another few dozens of engineers developing the software to communicate with the sensors, give you the data.
I went to an expo in Spain about six months ago and a trade show. And that trade show had hundreds of manufacturers of both the senses and the software, like the hardware and the software. And they all are offering it to you as OEM. They will be your manufacturer. You can slap your brand on our equipment.
We’ll customize it for you.
You want a pink one in carbon or you want a green one in plastic. We’ll make it anywhere you want. So the hardware is definitely not the key.
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